Trekking Company's total cost of inventory was $305,000. The net realizable value is $297,000. Under LCNRV, the amount reported should be $305,000.

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Quizplus · Accepted Answer

Under LCNRV, the inventory should be reported at the lower of cost or net realizable value. In this case, the net realizable value is lower at $297,000, so the inventory should be reported at that amount instead of the original cost of $305,000.

Trekking Company's Total Cost of Inventory Was $305,000