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The following information pertains to ABC Company's inventory for the current year: Item A - 40 units on hand, cost $10 per unit, market value
The following information pertains to ABC Company's inventory for the current year:
- Item A - 40 units on hand, cost $10 per unit, market value $11 per unit
- Item B - 75 units on hand, cost $2 per unit, market value $1.50 per unit
- Item C - 50 units on hand, cost $20 per unit, market value $19 per unit
Which one of the following journal entries would be required to mark the inventory down if the lower of cost or market rule is applied in aggregate?
The following information pertains to ABC Company's inventory for the current year:
- Item A - 40 units on hand, cost $10 per unit, market value $11 per unit
- Item B - 75 units on hand, cost $2 per unit, market value $1.50 per unit
- Item C - 50 units on hand, cost $20 per unit, market value $19 per unit
Which one of the following journal entries would be required to mark the inventory down if the lower of cost or market rule is applied in aggregate?
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