Reichart Company Has Four Different Categories of Inventory

question 98

Multiple Choice

Reichart Company has four different categories of inventory. Quantity, cost, market value for each inventory category is shown below: The company carries inventory at lower-of-cost-or-market applied to the inventory in aggregate. The implementation of the lower-of-cost-or-market rule would:

• A)increase assets and equity by $55.50.
• B)reduce assets and equity by $101.00.
• C)reduce assets and equity by $79.00.
• D)None of these.

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Definitions:

Stereotype Promise

A kind of self-fulfilling prophecy in which positive stereotypes, such as the “model minority” label applied to Asian Americans, lead to positive performance outcomes.

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true due to positive feedback between belief and behavior.

Deviance Avowal

Process by which an individual self-identifies as deviant and initiates their own labeling process.

Harley Davidson Motorcycles

An iconic American brand known for manufacturing heavyweight motorcycles designed for cruising on highways.