Sales Company Ltd. paid $10 wholesale for one unit of inventory for resale in the retail market. The same inventory can now be purchased for $9. The retail sales price of the inventory is $13,
However, it normally costs $2 to sell each unit. Using the lower-of-cost-and-net-realizable-value rule the inventory would be reported on Sales Company Ltd.'s balance sheet at:
A) $13
B) $11
C) $9
D) $10
Correct Answer:
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