Lower of cost or NRV

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    Topic
  • September 30, 2020 at 10:59 pm #3117315
    animalwithin
    Participant

    Am I correct in assuming that if we have a problem concerning Lower of Cost or NRV the only two numbers we are concerned with/have to solve for are original cost and NRV and then simply take the lower of the two? None of the middle market stuff in Lower of Cost or Market?

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  • October 1, 2020 at 1:04 am #3117366
    water
    Participant

    You are correct. I believe lower of cost of market only applies to LIFO. Everything else is at lower of cost or NRV

    REG - 91 (May 18 2020)

    FAR - 89 (Aug 24 2020)

    BEC - 95 (Sept 28 2020)

    AUD - 90 (Nov 12 2020)

    October 1, 2020 at 1:29 pm #3117675
    animalwithin
    Participant

    Thank you! I've made Lower of Cost/NRV stupidly more difficult than it really is by confusing the two processes.

    October 2, 2020 at 12:40 pm #3118434
    DS
    Participant

    You definitely need to be careful on these types of questions. Usually they will throw a bunch of numbers at you that are irrelevant like the normal profit margin that would go into a lower of cost or market calculation for LIFO.

    AUD - NINJA in Training
    BEC - 91
    FAR - 97
    REG - 99
    Foobar
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