Landers Company Has 9 Units in Inventory on December 31

question 124

Multiple Choice

Landers Company has 9 units in inventory on December 31.The units were purchased in November for $180 each.The price lists from suppliers indicate the current replacement cost of the item to be $178 each.What is the effect on gross profit if Landers values its ending merchandise inventory using the lower-of-cost-or-market rule?

• A) The gross profit would increase by $2.
• B) The gross profit would not be affected.
• C) The gross profit would decrease by $18.
• D) The gross profit would increase by $18.

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Definitions:

EPA-Approved Disinfectant

A disinfectant that has been tested and approved by the Environmental Protection Agency for its effectiveness against specific pathogens.

Bleach Solution

A liquid mixture containing bleach, typically used for disinfecting or whitening purposes.

Respiratory Etiquette

The practice of minimizing the spread of respiratory pathogens through certain behaviors, such as covering the mouth and nose with a tissue when coughing or sneezing.

Hygiene

Practices and conditions that help maintain health and prevent the spread of diseases, primarily through cleanliness and sanitation.