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Why the answer is B 15. Under the lower-of-cost-or-market basis for valuing inventory if the market value of an item in inventory has declined during

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15. Under the lower-of-cost-or-market basis for valuing inventory if the market value of an item in inventory has declined during a given accounting period, A) pretax income and the amount of ending inventory will be reduced for the period in which the merchandise is sold. B) pretax income and the amount of ending inventory will be reduced for the period during which the decline in market value occurred. C) pretax income will be reduced for the period during which the decline in market value occurred and the amount of ending inventory will decline for the period in which the merchandise is sold. D) A and B are both correct. E) None of the above is correct

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