If there is a recovery in the net realizable value of the inventory, the write-up can never be larger than the original writedown.

Name: If there is a recovery in the net realizable value of the inventory, the write-up can never be larger than the original writedown.
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Question

Quizplus · Accepted Answer

The write-up in the net realizable value of inventory is limited to the amount of the original write-down, ensuring that the inventory is not valued above its original cost.

If There Is a Recovery in the Net Realizable Value