Inventory that originally cost $10,000 was written down to its net realizable value of $8,500 at the end of 2014.At the end of 2015, the net realizable value is determined to be $10,500.At what amount should the inventory be reported on the December 31, 2015 statement of financial position?
A)$10,500
B)$10,000
C)$9,500
D)$8,500

Question

Quizplus · Accepted Answer

The inventory should be reported at its original cost of $10,000 because the net realizable value has increased above the original cost, allowing for a reversal of the previous write-down.

Inventory That Originally Cost $10,000 Was Written Down to Its