Question 50 (2 points)

If the replacement value of the inventory is $80,000 and the inventory balance is $85,000, what amount should be reported for inventory using the lower-of-cost-or-market rule?

Question 50 options:

	$85,000
	$80,000
	$5,000
	$165,000

Question 51 (2 points)

f the replacement value of the inventory is 250,000 and the inventory balance is 225,000, what adjusting entry would be required for inventory using the lower-of-cost-or-market rule?

Question 51 options:

	Debit Inventory and Credit of Goods Sold $25,000
	Debit Inventory and Credit of Goods Sold $225,000
	Credit Inventory and Debit of Goods Sold $25,000
	No adjusting entry is needed