Landers Company has 9 units in inventory on December 31.The units were purchased in November for $180 each.The price lists from suppliers indicate the current replacement cost of the item to be $178 each.What is the effect on gross profit if Landers values its ending merchandise inventory using the lower-of-cost-or-market rule?

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C) Merchandise Inventory to be written down to market value 11ea8873_d47c_6531_bb89_f3d77eb521c9_TB5026_00 Total amount to be written down from Merchandise Inventory 11ea8873_d47c_6532_bb89_4fca6c349d7c_TB5026_00 Because this will increase the cost of goods sold by $18, the gross profit will decrease by $18.

Landers Company Has 9 Units in Inventory on December 31