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

---

Definitions:

Regression Equation

A formula that represents the relationship between a dependent variable and one or more independent variables, used to predict or estimate outcomes.

SSE

Cumulative squared discrepancies between predicted values by a model and the corresponding actual data points.

Coefficient Of Determination

A measure used in statistical analysis that assesses how well a model explains and predicts future outcomes, represented as a value between 0 and 1.

Dependent Variable

The variable in an experiment or study that is expected to change in response to changes in another variable known as the independent variable.