ABC, Inc. has the following three inventory items (items A,…
ABC, Inc. has the following three inventory items (items A, B, and C) that they are concerned may be overstated. They currently report each item at cost on the balance sheet. Item Cost Replacement Cost NRV Normal profit of NRV A $400,000 $380,000 $400,000 10% B $475,000 $470,000 $600,000 25% C $500,000 $460,000 $700,000 20% What is the “designated market value” for each inventory item?