Used Cars Inc. has the following inventory of vehicles: ...
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Accounting
Used Cars Inc. has the following inventory of vehicles:
Cost
NRV
Vehicle A
$ 25,000
$ 25,500
Vehicle B
50,000
40,000
Vehicle C
16,000
18,000
Vehicle D
22,000
21,500
$113,000
$105,000
In applying the lower of cost and net realizable value rule, by how much would Used Cars need to adjust its inventory?
Write down inventory by $2,500.
Write down inventory by $8,000.
Write up inventory by $8,000.
Write down inventory by $10,500.
Used Cars Inc. has the following inventory of vehicles:
| Cost | NRV |
Vehicle A | $ 25,000 | $ 25,500 |
Vehicle B | 50,000 | 40,000 |
Vehicle C | 16,000 | 18,000 |
Vehicle D | 22,000 | 21,500 |
| $113,000 | $105,000 |
In applying the lower of cost and net realizable value rule, by how much would Used Cars need to adjust its inventory?
Write down inventory by $2,500.
Write down inventory by $8,000.
Write up inventory by $8,000.
Write down inventory by $10,500.
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