Question

The designated market value Select one: a. is always the middle value of replacement cost, net...

The designated market value

Select one:

a. is always the middle value of replacement cost, net realizable value, and net realizable value less a normal profit margin.

b. should always be equal to net realizable value less a normal profit margin.

c. may sometimes exceed net realizable value.

d. should always be equal to net realizable value.

Homework Answers

Answer #1

Hi

Please let me know in case you face any issue:

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The floor to be used in applying the lower-of-cost-or-market method to inventory is determined as the...
The floor to be used in applying the lower-of-cost-or-market method to inventory is determined as the a. replacement cost. b. net realizable value less normal profit margin. c. selling price less costs of completion and disposal. d. net realizable value.
In applying LCM, market cannot be: 1-Less than net realizable value minus a normal profit margin....
In applying LCM, market cannot be: 1-Less than net realizable value minus a normal profit margin. 2- Net realizable value less reasonable completation and disposal cost. 3- less than cost 4-greater than net realizable value reduced by an allowance for normal profit margin.
At the end of the year, inventory has a cost of $200,000, net realizable value of...
At the end of the year, inventory has a cost of $200,000, net realizable value of $195,000, replacement cost of $160,000, and normal profit margin of $25,000. Assuming normal business circumstances, prepare the year-end adjusting entry, if any, for inventory using the lower of cost or market approach. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Inventory Information: Historical Cost   $50,000 Replacement Cost   $42,000 Net realizable value less normal profit $37,000 Estimated...
Inventory Information: Historical Cost   $50,000 Replacement Cost   $42,000 Net realizable value less normal profit $37,000 Estimated Selling Price   $65,000 Estimated costs of complete   $12,000 Estimated cost to make sell $6,000 According to IFRS, what dollar amount should be written down for decline in inventory value? SHOW YOUR WORK
Personal income Select one: A. is always greater than national income. B. is always less than...
Personal income Select one: A. is always greater than national income. B. is always less than national income. C. will always equal national income. D. may be greater than or less than national income.
Product Cost Replacement cost NRV NRV - NP Market Inventory Value 101 $152,000 $138,800 102 113,000...
Product Cost Replacement cost NRV NRV - NP Market Inventory Value 101 $152,000 $138,800 102 113,000 106,700 103 75,300 50,200 104 38,300 35,700 Totals $378,600 $0 Tatum Company has four products in its inventory. Information about the December 31, 2018, inventory is as follows: Product Total Cost Total Replacement Cost Total Net Realizable Value 101 $ 152,000 $ 138,800 $ 126,200 102 113,000 106,700 138,100 103 75,300 50,200 63,400 104 38,300 35,700 64,100 The normal gross profit percentage is 35%...
Match the terms with their descriptions. future profits net realizable value replacement cost price-level adjusted historical...
Match the terms with their descriptions. future profits net realizable value replacement cost price-level adjusted historical cost mark-to-market historical cost 1. measures an asset’s value at how much an organization paid to acquire an asset. 2. measures an asset’s value based on market values. 3. measures an asset’s value at how much it could be sold for, including net of any sales costs. 4. measures an asset’s value at how much it would cost to replace. 5. measures an asset’s...
The following inventory information was taken from the records of GlobeKom Ltd: Historical cost $12,000 Replacement...
The following inventory information was taken from the records of GlobeKom Ltd: Historical cost $12,000 Replacement cost $9,000 Expected selling price $10,000 Expected selling cost $1,500 Normal profit margin 10% of selling price Under U.S. GAAP, what should be the market value for Inventory (assuming LCM method is used)? A. $8,500 B. $9,500 C. $10,000 D. $9,000
Net present value _____________. Select one: a. Requires the firm set an arbitrary cutoff point for...
Net present value _____________. Select one: a. Requires the firm set an arbitrary cutoff point for determining whether an investment is acceptable b. Is equal to zero when the discount rate used is less than the IRR c. Is simplified by the fact that future cash flows are easy to estimate d. Is equal to the initial investment in a project e. Compares project cost to the present value of the project benefits
In some instances, accounting principles require a departure from valuing inventories at cost alone. Determine the...
In some instances, accounting principles require a departure from valuing inventories at cost alone. Determine the proper unit inventory price in the following cases, under the lower-of-cost-or-market rule. Cases 1 2 3 4 5 Cost $16.80 $13.80 $17.10 $17.50 $15.10 Net realizable value 14.80 20.90 16.00 8.90 18.70 Net realizable value less normal profit 13.30 19.30 14.75 7.10 17.00 Market (replacement cost) 16.00 19.00 11.40 9.80 15.80