The Dubai Corporation has the following inventory items on hand at December 31, 2020:

	A	B
Historical cost	2,000	4,000
Replacement cost	1,600	3,200
Estimated selling price	1,720	2,480
Estimated costs to complete and sell	100	200
Normal profit margin 20%	324	456
Net realizable value less profit margin	1,296	1,824

Required:

Apply the lower of cost or net realizable value rule of accounting for inventory and determine the value of inventory of the Dubai Corporation at December 31, 2020.

Conclusion.