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The original cost of an item of inventory is above its replacement cost. The item’s replacement cost is below its net realizable value but is higher than its net realizable value minus a normal profit. Under the lower of cost or market method, the inventory item should be valued at:________.

A. Net realizable value
B. Original cost
C. Net realizable value less normal profit margin
D. Replacement cost

1 Answer

2 votes
The answer would be original cost
User Mark Wilden
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