After a lower-of-cost-or-market write down,Inventory will ________.

Question

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After a lower-of-cost-or-market write down, inventory will decrease by the difference between the historical cost and the replacement cost. This write down is necessary when the replacement cost of inventory falls below its historical cost, indicating a potential loss. As a result, the inventory value is reduced to the lower market value, which leads to a decrease in inventory on the balance sheet.

After a Lower-Of-Cost-Or-Market Write Down,Inventory Will ________