Use the Following Information to Answer Questions
Handel Inc

question 38

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 to the inventory as a whole would be:

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

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Definitions:

Money

A medium of exchange in the form of coins and banknotes; used as a way to value goods and services and facilitate trade.

Taste Aversions

The acquired aversion to specific food or beverage due to its connection with a distressing or sickening event.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without any need for learning.

Learned By Association

The process of forming connections between stimuli and responses, typically through conditioning.