Entity C developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value (LCNRV item-by-item) basis...

Entity C developed the following information about its inventories in applying the lower-of-cost-or-net-realizable-value (LCNRV item-by-item) basis in valuing inventories:
Product            Cost               NRV
            A         $120,000      $114,000
            B 80,000 76,000
            C    160,000       162,000

After Entity D applies the LCNRV rule, the value of the inventory reported on the balance sheet would be

$350,000.

$360,000.

$362,000

$352,000.

Expert Solution

After Entity D applies the LCNRV rule, the value of the inventory reported on the balance sheet would be $350,000
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Statement showing Computations
Product	Cost	NRV	lower-of-cost-or-net-realizable-value
Product A	120,000.00	114,000.00	114,000.00
Product B	80,000.00	76,000.00	76,000.00
Product C	160,000.00	162,000.00	160,000.00
	360,000.00	352,000.00	350,000.00

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