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P8.4 (LO 2) Excel (Lower-of-Cost-or-Market) Referring to the situation in P8.2 for Garcia Home Improvement Company, consider the following expanded data at May 31, 2025.
P8.4 (LO 2) Excel (Lower-of-Cost-or-Market) Referring to the situation in P8.2 for Garcia Home Improvement Company, consider the following expanded data at May 31, 2025. Assume Garcia uses LIFO inventory costing. Instructions a. 1. Determine the write-down, if any, at May 31, 2025. 2. For the fiscal year ended May 31, 2025 prepare the entry to record the decline in inventory to market, if any. b. Explain the rationale for the use of the lower-of-cost-or-market rule as it applies to inventories. (CMA adapted)
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