Niteco Company Ended Its Fiscal Year with Inventory Recorded at Its

question 132

Multiple Choice

Niteco Company ended its fiscal year with inventory recorded at its cost of $10,000.Niteco believes it will be able to sell the inventory for approximately $12,000.Due to changes in the market,Niteco would be able to replace this inventory for $9,000.How much should Niteco show for inventory on its year-end balance sheet?

• A)$10,000
• B)$12,000
• C)$9,000
• D)$2,000

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Definitions:

Homeowners' Association

An organization in a subdivision, planned community, or condominium building that makes and enforces rules for the properties and its residents.

Rentals

Payments made periodically for the use of someone else's property or equipment.

Unreasonable Zoning

Zoning regulations or decisions that are arbitrary, capricious, or unreasonable in restricting the use of land, potentially leading to legal challenges.

Constructive Taking

A situation where government regulation of property is so restrictive that it effectively amounts to a taking under the Fifth Amendment, requiring just compensation.