(LCNRV) The net realizable value of Lake Corporation's inventory has declinedbelow its cost. Allyn Conan,...
80.2K
Verified Solution
Link Copied!
Question
Accounting
(LCNRV) The net realizable value of Lake Corporation's inventory has declinedbelow its cost. Allyn Conan, the controller, wants to use the loss method to write down inventorybecause it more clearly discloses the decline in the net realizable value and does not distort thecost of goods sold. His supervisor, financial vice president Bill Ortiz, prefers the cost-of-goods-sold method to write down inventory because it does not call attention to the decline in netrealizable value.
Answer the following questions.
(a) What, if any, is the ethical issue involved?
(b) Is any stakeholder harmed if Bill Ortiz's preference is used?
(c) What should Allyn Conan do?
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.