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The replacement cost of an inventory item is $88. Net realizable value is $97.50. Net realizable value less a normal profit margin is $88.50. The

The replacement cost of an inventory item is $88. Net realizable value is $97.50. Net realizable value less a normal profit margin is $88.50. The cost of the item is $93. The designated market value used in applying Lower-of-Cost-or-Market is:
  • A. $97.50
  • B. $88.50
  • C. $93
  • D. $88

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