Which of the following amounts would be reported for Inventory on the balance sheet if the cost of an item is $80,the current selling price is $100 and the current replacement cost is $75?

Question

Quizplus · Accepted Answer

Inventory is reported at the lower of cost or market value. In this scenario, the market value is the replacement cost of $75, which is lower than the cost of $80. Therefore, the amount reported for Inventory on the balance sheet would be $75.

Which of the Following Amounts Would Be Reported for Inventory