Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows:

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Montana Co. has determined its year-end inventory on a FIFO basis to be $600,000. Information pertaining to that inventory is as follows:

What should be the carrying value of Montana’s inventory?

A. $600,000.

B. $520,000.

C. $590,000.

D. $510,000.

Answer: B. $520,000.
NRV = $590,000

NRV – NP = $510,000
RC = $520,000
Designated market is RC = $520,000 which is less than cost.

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