Presented below is information related to Rembrandt Inc.’s inventory. (per unit)

ID: 2500264 • Letter: P

Question

Skis Boots Parkas

Historical cost $190.00 $106.00 $53.00

Selling price 212.00 145.00 73.75

Cost to distribute 19.00 8.00 2.50

Current replacement cost 203.00 105.00 51.00

Normal profit margin 32.00 29.00 21.25

Determine the following:

(a) the two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis.

Ceiling Limit $

Floor Limit $

(b) the cost amount that should be used in the lower-of-cost-or-market comparison of boots. The cost amount $

(c) the market amount that should be used to value parkas on the basis of the lower-of-cost-or-market. The market amount $

Presented below is information related to Rembrandt Inc.’s inventory. (per unit)

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