Rowan Company has four different categories of inventory.Quantity,cost,market value for each inventory category is shown below:
The company carries inventory at lower-of-cost-or-market applied to the inventory in aggregate.The implementation of the lower-of-cost-or-market rule would:

A)increase assets and equity by $55.50.
B)reduce assets and equity by $101.00.
C)reduce assets and equity by $79.00.
D)leave total assets and equity unchanged.

Question

Rowan Company has four different categories of inventory.Quantity,cost,market value for each inventory category is shown below:
The company carries inventory at lower-of-cost-or-market applied to the inventory in aggregate.The implementation of the lower-of-cost-or-market rule would:

A)increase assets and equity by $55.50. 
B)reduce assets and equity by $101.00. 
C)reduce assets and equity by $79.00. 
D)leave total assets and equity unchanged.

Quizplus · Accepted Answer

The Answer of Rowan Company has four different categories of inventory.Quantity,cost,market value for each inventory category is shown below:
The company carries inventory at lower-of-cost-or-market applied to the inventory in aggregate.The implementation of the lower-of-cost-or-market rule would:

A)increase assets and equity by $55.50. 
B)reduce assets and equity by $101.00. 
C)reduce assets and equity by $79.00. 
D)leave total assets and equity unchanged.

Rowan Company Has Four Different Categories of Inventory