SLR Corporation has 2,700 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		$	84			$	51
Selling price			155				53
Costs to sell			4				4

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?

Complete this question by entering your answers in the tabs below.

• Required 1

Determine the carrying value of SLRs inventory assuming that the lower of cost or net realizable value (LCNRV) rule is applied to individual products.

Product	Cost	NRV	Per Unit Inventory Value	Unit	Cost	Lower of Cost or NRV
1	!	!	!	2,700
2	!	!	!	2,700
			Cost		$0
			Inventory value			$0

• Required 2

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

Before-tax income effect

!

HINT: The boxes with the "!" are the ones that need to be filled out