Use the Following Information to Answer Questions
Handel Inc

question 20

Multiple Choice

Use the following information to answer questions
Handel Inc.values its inventory on an LCM basis.The following data came from the 2011 inventory, which consisted of two items: $\begin{array}{lrr}&\text { Item \# 130}&\text { Item \# 140 }\\\hline\text { Original cost } & \$ 12,000 & \$ 15,000 \\\text { Selling price } & 15,000 & 26,000 \\\text { Estimated selling costs } & 5,000 & 10,000 \\\text { Replacement cost } & 13,000 & 15,000 \\\text { Normal profit margin } & 1,500 & 1,000\end{array}$
-The appropriate carrying value for the entire inventory when applying the LCM rule using net realizable value on an item-by-item basis would be:

• A)$25,000
• B)$26,000
• C)$27,000
• D)$28,000

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Definitions:

Case-Control Studies

Observational studies that retrospectively investigate exposure factors among subjects with a specific condition compared to those without the condition.

Exposure

Contact with a substance or factor that could affect health.

Association

A statistical relationship between two or more variables, events, or actions, indicating that they may occur together or influence each other but not necessarily implying causation.

Relative Risk

A measure that compares the risk of a health event among one group with the risk among another group.