Walter Distribution Co.has determined its December 31, 2010 inventory on a FIFO basis at $240,000.Information pertaining to that inventory follows: Walter records losses that result from applying the lower of cost and market rule.At December 31, 2010, the loss that Walter should recognize is
A)$0.
B)$5,000.
C)$15,000.
D)$25,000.

Question

Walter Distribution Co.has determined its December 31, 2010 inventory on a FIFO basis at $240,000.Information pertaining to that inventory follows:  Walter records losses that result from applying the lower of cost and market rule.At December 31, 2010, the loss that Walter should recognize is
A)$0. 
B)$5,000. 
C)$15,000. 
D)$25,000.

Quizplus · Accepted Answer

The Answer of Walter Distribution Co.has determined its December 31, 2010 inventory on a FIFO basis at $240,000.Information pertaining to that inventory follows:  Walter records losses that result from applying the lower of cost and market rule.At December 31, 2010, the loss that Walter should recognize is
A)$0. 
B)$5,000. 
C)$15,000. 
D)$25,000.