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On December 31, 2013, a company had an item (that it sells regularly) which was returned by a customer because it was defective. Although it
On December 31, 2013, a company had an item (that it sells regularly) which was returned by a customer because it was defective. Although it originally cost $150, and was sold to the customer for $280, it can be sold as used for only $140. Prior to making it saleable the company must spend $30 to repair it and the estimated cost to resell it is $20. The company expects a normal profit of 10 percent on the resale of damaged merchandise. The net realizable value (NRV) of this item is: Multiple Choice $76 O $150 $90 O $110
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