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The replacement cost of a LIFO basis inventory item is below the net realizable value and above the net realizable value minus the normal profit margin. The original cost of the inventory item is below the net realizable value minus the normal profit margin. Under the lower-of-cost-or-market (LCM) method, the inventory item should be measured at:.
A. Original cost.
B. Replacement cost.
C. NRV.
D. NRV - Profit Margin.
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The replacement cost of a LIFO basis inventory item is below the net realizable value and above the...
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