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1, and the controller of Martin Corporation is applying the lower-of-cost-or-market (LCM) e following data: Data Table $ 380,
Assignments S6-10 (similar to) Question Help It is December 31, the end of the year, and the controller of Martin Corporation
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Answer #1

Solution:

Inventory will be reported on the balance sheet at = Lower of cost or market value = $41,000

Cost of goods sold will be reported in income statement at = Unadjusted cost of goods sold + Reduction in market value of inventory

= $380,000 + ($58,000 - $41,000) = $397,000

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