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The Allowance for Unrealized Holding Gains That Appears in the Cost

Question 44

Multiple Choice

The allowance for unrealized holding gains that appears in the cost of goods sold section of a federal financial statement effectively does which of the following?


A) Adjusts the latest acquisition cost inventory valuation to the historical cost valuation.
B) Increases the cost of goods sold by the increase in market value of the inventory.
C) Decreases the cost of goods sold by the increase in market value of the inventory.
D) Adjusts the historical cost valuation to the latest acquisition cost inventory valuation.

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