SLR Corporation has 1,000 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows:

 SLR Corporation has 1,000 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows:

 Determine the carrying value of SLR’s inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. What is the before-tax income effect of the LCM adjustment?

 Determine the carrying value of SLR’s inventory assuming that the lower of cost or market (LCM) rule is applied to individual products.

What is the before-tax income effect of the LCM adjustment?

 

Explanation

 

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