Fundy Corp.has the following information about their inventory at year-end: $\begin{array}{lrr}\text { Item}&\text { Cost }&\text { NRV }\\hline
\# 1 & \$ 12,000 & \$ 12,500 \
\# 2 & 21,250 & 19,750 \
\# 3 & 18,600 & 18,500
\end{array}$ If Fundy values their inventory at the lower of cost and net realizable value on an individual basis, what would be loss on inventory write down for the current year?
A)$500
B)$1,100
C)$1,600
D)The loss would not be recorded until the items are sold.

Question

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The Answer of Fundy Corp.has the following information about their inventory at year-end: $\begin{array}{lrr}\text { Item}&\text { Cost }&\text { NRV }\\hline
\# 1 & \$ 12,000 & \$ 12,500 \
\# 2 & 21,250 & 19,750 \
\# 3 & 18,600 & 18,500
\end{array}$ If Fundy values their inventory at the lower of cost and net realizable value on an individual basis, what would be loss on inventory write down for the current year?
A)$500
B)$1,100
C)$1,600
D)The loss would not be recorded until the items are sold.

Fundy Corp If Fundy Values Their Inventory at the Lower of Cost