The floor, or the minimum market amount at which inventory can be carried on the books, is equal to

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The floor, or minimum market amount, is the lowest amount at which inventory can be valued on the books. This means that the inventory must be valued at either its net realizable value (the estimated selling price minus any additional costs that would be incurred to make the sale) or its current replacement cost, whichever is lower. Option C correctly identifies this, as it states that the floor is equal to the net realizable value less the normal profit margin. This ensures that inventory is not valued at an amount that would result in a loss if it were sold. Options A, B, and D do not accurately describe the method used to determine the floor value of inventory.

The Floor, or the Minimum Market Amount at Which Inventory