SLR Corporation has 2,000 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows:

	Product 1				Product 2
Cost		$	70			$	44
Selling price			120				46
Costs to sell			6				3

Determine the carrying value of SLRs inventory assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products. What is the before-tax income effect of the LCNRV adjustment?

to individual products.

Product	Cost	NRV	Per Unit Inventory Value	Unit	Cost	Lower of Cost or NRV
1				2,000
2				2,000
			Cost		$0
			Inventory value			$0

What is the before-tax income effect of the LCNRV adjustment?

What is the before-tax income effect of the LCNRV adjustment

Before-tax income effect