y uses the LIFO inventory method and has the following information available regarding each unit of its inventory: 5,200 Selling price Costs of completion Current replacement cost 5,000 2,400 Based on this information, determine the amount that should be used as the market value to apply the lower of cost or market rule to determine Brown's ending inventory GAAP requires the application of the lower of cost or market rule. To measure replacement cost, GAAP imposes an upper (ceiling) and a lower (floor) constraint on the market value as follows: . Net Realizable Value (ceiling): The market value should not be more than the net realizable value. NRV the estimated selling price in the ordinary course of busines . Net Realizable Value minus a Normal Profit Margin (floor): The market value should not be less than the net realizable value, reduced by an estimate of a normal prot When a company uses the LIFO method if the current replacement cost is between the ceiling and the floor, you should use it as the market value. If the current replacen replacement cost is below the floor, you should use the floor