Teel Distribution Co. has determined its December 31, 2008 inventory on a FIFO basis at $250,000. Information pertaining to that inventory follows:
Teel records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2008, the loss that Teel should recognize is

Question

Teel Distribution Co. has determined its December 31, 2008 inventory on a FIFO basis at $250,000. Information pertaining to that inventory follows:
 Teel records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2008, the loss that Teel should recognize is

Quizplus · Accepted Answer

$250,000 - $225,000 (RC) = $25,000.