Which of the following values is considered the market value when valuing inventory at lower-of-cost-or-market under U.S.GAAP?

Question

Quizplus · Accepted Answer

When valuing inventory at lower-of-cost-or-market under U.S. GAAP, the market value is considered to be the current replacement cost. This means that the value of inventory is reduced to its replacement cost if the replacement cost is lower than the cost or the net realizable value (NRV). Therefore, option B, current replacement cost is the correct choice.

Which of the Following Values Is Considered the Market Value