A Web-based retailer's adjusted retail book value is $600,000; its cost complement is 0.60.Its closing inventory at cost is $540,000.

Question

Quizplus · Accepted Answer

The formula for adjusted retail book value is: Retail Value x (1 - Cost Complement). 
So, if we plug in the values given in the question, we get: 
Adjusted Retail Book Value = $600,000 x (1 - 0.60) = $240,000. 
However, the question states that the closing inventory at cost is $540,000, which is higher than the adjusted retail book value. This is not possible, as the closing inventory at cost should be equal to or lower than the adjusted retail book value. Therefore, the answer is false.

A Web-Based Retailer's Adjusted Retail Book Value Is $600,000; Its