tion related to your Companys year-end inventory follows:

Current replacement cost $ 450

Estimated selling price 400

Current cost 395

Normal profit margin 60

Estimated cost of disposal 20 (CPA)

You record losses that result from applying the lower-of-cost-or-market (LCM) rule. ANSWER THE FOLLOWNG FOUR QUESTIONS

1. What amount is the floor for LCM purposes?

2. What amount should be used as designated market?

3. At what amount should inventory be reported in the financial statements?

4. What, if any, is the amount of the loss from applying LCM?