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

question 22

Multiple Choice

Inventory that originally cost $10,000 was written down to its net realizable value of $8,500 at the end of 2011. At the end of 2012, the net realizable value is determined to be $10,500. At what amount should the inventory be reported on the December 31, 2012 statement of financial position?

• A)$10,500
• B)$10,000
• C)$9,500
• D)$8,500

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Definitions:

Equivalent

Having equal value, function, or meaning.

Teamwork

The collaborative effort of a group to achieve a common goal or to complete a task in the most effective and efficient way.

Paint

A substance used to add color or texture to surfaces, typically made from pigments suspended in a liquid.

Predicate

In grammar, the part of a sentence that tells what the subject does or is; in logic, the part of a proposition that affirms or denies something about the subject.