6. Evans Company has damaged inventory that originally cost…
6. Evans Company has damaged inventory that originally cost $5,000. Evans expects to sell the damaged inventory for $4,600. Evans expects to incur $300 of direct selling and disposal costs. For this question, net realizable value equals the estimated selling price minus the direct selling and disposal costs. Inventory must be reported at the lower of its original cost or net realizable value. At what amount should Evans report the damaged inventory? 1. $4,300 2. $4,600 3. $4,700 4. $5,000 Instructions to students: Type in the number of the answer of your choice (type in either 1, 2, 3, or 4). Do not type in a decimal after inputting the number.