Question
SLR Corporation has 2,600 units of each of its two products in its year-end inventory. The unitary data of each of the products are the
SLR Corporation has 2,600 units of each of its two products in its year-end inventory. The unitary data of each of the products are the following:
| Product 1 | product 2 | |||||||
| Cost | ps | 82 | ps | 50 | ||||
| Sale price | 150 | 52 | ||||||
| selling costs | 12 | 3 | ||||||
Required
Determine the book value of SLR inventory assuming the lower of cost or net realizable value (LCNRV) rule applies to individual products. What is the pre-tax income effect of the LCNRV adjustment?
What is the pre-tax income effect of the LCNRV adjustment?
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
10th edition
1260481956, 1260310175, 978-1260481952
