Use the Following Information to Answer Questions 70-71

question 13

Multiple Choice

Use the following information to answer questions 70-71.
Pal Distributers Inc. values its inventory on an LCM basis. The following data came from the 2020 inventory, which consisted of two items:
-When applying the LCM, the following is true:

• A) the inventory account remains at its original value.
• B) a contra account to inventory is used.
• C) COGS rises when ending inventory is reduced to market value.
• D) LCM can only be applied to individual items.

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Definitions:

Transparent

The quality of a material that allows light to pass through it without being scattered, making objects behind it visible.

Hardness

The measure of a material's resistance to deformation, penetration, or scratching, often used in the context of minerals.

Fractures

Breaks or cracks in rock due to physical stress exceeding the strength of the rock, which can occur without the movement of the rock on either side of the break.

Carbonate Mineral

is a type of mineral consisting primarily of carbonate ions in combination with metal ions, common in rocks like limestone and dolomite.