Use the following information:

If the market price at year end is $210,000,what is the write down required?
A)$0
B)$40,000
C)$210,000
D)$250,000

Name: Use the following information: If the market price at year end is $210,000,what is the write down required? A)$0 B)$40,000 C)$210,000 D)$250,000
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Question

Use the following information:

If the market price at year end is $210,000,what is the write down required?
A)$0 
B)$40,000 
C)$210,000 
D)$250,000

Quizplus · Accepted Answer

B)210,000 = market value or NRV of inventory.
150,000 + 100,000 = 250,000 = cost of inventory
210,000 - 250,000 = 40,000 = write down needed

Use the Following Information