Tyler Company incurred an inventory loss due to a decline in net realizable value (NRV)during its first quarter of operations in 20X8.At the end of the first quarter,management of the company believed the decline in NRV to be permanent.In the second quarter,the NRV of Tyler's inventories increased above their acquisition cost.NRV remained higher than acquisition cost during the remainder of 20X8.How should Tyler report the facts above on its first and second quarter income statements?

A)Option A
B)Option B
C)Option C
D)Option D

Question

Tyler Company incurred an inventory loss due to a decline in net realizable value (NRV) during its first quarter of operations in 20X8.At the end of the first quarter,management of the company believed the decline in NRV to be permanent.In the second quarter,the NRV of Tyler's inventories increased above their acquisition cost.NRV remained higher than acquisition cost during the remainder of 20X8.How should Tyler report the facts above on its first and second quarter income statements?

A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

The Answer of Tyler Company incurred an inventory loss due to a decline in net realizable value (NRV)during its first quarter of operations in 20X8.At the end of the first quarter,management of the company believed the decline in NRV to be permanent.In the second quarter,the NRV of Tyler's inventories increased above their acquisition cost.NRV remained higher than acquisition cost during the remainder of 20X8.How should Tyler report the facts above on its first and second quarter income statements?

A)Option A 
B)Option B 
C)Option C 
D)Option D

Tyler Company Incurred an Inventory Loss Due to a Decline