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Simm Co. has determined its December 31 inventory on a LIFO basis to be $400,000. Information pertaining to the inventory follows: Estimated selling price $408,000
Simm Co. has determined its December 31 inventory on a LIFO basis to be $400,000. Information pertaining to the inventory follows:
| Estimated selling price | $408,000 |
| Estimated cost of disposal | 20,000 |
| Normal profit margin | 60,000 |
| Current replacement cost | 390,000 |
At December 31, what should be the amount of Simm's inventory?
$400,000
$390,000
$388,000
$328,000
correct answer is 388,000
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