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The following information is available for Koopa Corporation for the year ended December 31, 2023: Sales revenue $600,000 Beginning inventory (at cost) 200,000 Net purchases
The following information is available for Koopa Corporation for the year ended December 31, 2023:
Sales revenue $600,000
Beginning inventory (at cost) 200,000
Net purchases 250,000
Ending inventory:
Historical cost 170,000
Net realizable value 155,000
Required:
1. Compute gross profit as it would appear on the income statement valuing ending inventory at historical cost.
2. Compute gross profit as it would appear on the income statement valuing ending inventory at lower-of-cost-or-net-realizable-value.
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