Writing a Short Issues MemoInventory Valuation You have been asked to draft a brief issues memo ("to the

files") analyzing the following issue.

Charles Corp. has leased a mine from which it recently extracted 2,000 kilograms of bauxite (a min-

eral used in producing aluminum). Charles Corp. plans to sell the bauxite to aluminum manufacturers.

Charles Corp. is analyzing whether its bauxite inventory can be carried at its selling price per ASC 330-

10-35-16(b). Assume that quoted market prices are generally available for bauxite, and that the market

for bauxite is active.

Using the standard memo format, analyze whether all necessary conditions are met for the accounting treatment

proposed. If assumptions are needed to fully evaluate the guidance, identify those assumptions in your analysis. For this

particular memo, you are not required to present alternative treatments; assume for this issue that you have solely been

asked to document whether the conditions in ASC 330-10-35-16(b) are met