Kincaid Camera Shop applies the lower-of-cost-or-market rule to individual items of inventory.In 2016,some of Kincaid's inventory lost value due to obsolescence.Other items increased in market value.In total,the market value of Kincaid's inventory was higher at the end of 2016 than the cost of the inventory.Would Kincaid have an adjustment to make at the end of 2016 due to the lower-of-cost-or-market rule? Would the answer be any different if Kincaid applied the rule in aggregate rather than to individual items?

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The Answer of Kincaid Camera Shop applies the lower-of-cost-or-market rule to individual items of inventory.In 2016,some of Kincaid's inventory lost value due to obsolescence.Other items increased in market value.In total,the market value of Kincaid's inventory was higher at the end of 2016 than the cost of the inventory.Would Kincaid have an adjustment to make at the end of 2016 due to the lower-of-cost-or-market rule? Would the answer be any different if Kincaid applied the rule in aggregate rather than to individual items?

Kincaid Camera Shop Applies the Lower-Of-Cost-Or-Market Rule to Individual Items