The following information pertains to inventory held by a company on December 31, 2013. What is the amount of inventory loss shown on the income statement under U.S. GAAP?

Name: The following information pertains to inventory held by a company on December 31, 2013. What is the amount of inventory loss shown on the income statement under U.S. GAAP?
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

The following information pertains to inventory held by a company on December 31, 2013.  What is the amount of inventory loss shown on the income statement under U.S. GAAP?

Quizplus · Accepted Answer

Historical Cost $30,000 - [Net Realizable Value $27,000 - Normal 20% Markup $5,400 = $21,600] = $8,400 GAAP Loss on Inventory from LCM

The Following Information Pertains to Inventory Held by a Company