IAS 2: Inventories The ending inventory under FIFO at December 31, 2019 was $125,000, which represents historical cost. Further analysis indicates...
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IAS 2: Inventories

The ending inventory under FIFO at December 31, 2019 was

$125,000, which represents historical cost. Further analysis indicates the following: (1) replacement cost of $90,000, (2) net realizable value of $95,000, and (3) normal profit margin is 20 percent of NRV. Curreri uses the Lower of Cost or NRV method to measure its inventories. Note that the inventory items are related to similar product lines and, accordingly, are tested at the "Group" level.

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