Perfect Catering Company's ending inventory was $103,700 at historical cost and $116,500 at current replacement cost.The company uses LIFO.Before consideration of the lower-of-cost-or-market rule,the company's cost of goods sold was $58,000.Following U.S.GAAP,which of the following statements reflect the correct application of the lower-of-cost-or-market rule?
A) The Ending Inventory balance will be $103,700,and Cost of Goods Sold will be $58,000.
B) The Ending Inventory balance will be $116,500,and Cost of Goods Sold will be $58,000.
C) The Ending Inventory balance will be $116,500,and Cost of Goods Sold will be $70,800.
D) The Ending Inventory balance will be $116,500,and Cost of Goods Sold will be $45,200.
Correct Answer:
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