Brief Exercise 198 The Entertainment Center accumulates the following cost and net realizable value (NRV) data at December 31.

Inventory Categories Cost Data Market Data
Camera $11,200 $10,000
Camcorders 7,700 8,800
DVDs 13,900 12,700

Compute the lower-of-cost-or-net realizable value for company's inventory.

$30,400

Explanation:

The computation of the lower-of-cost-or-net realizable value is shown below:-

Inventory    Cost            Net realizable value     Lower cost

Camera       $11,200        $10,000                        $10,000

Camcorders $7,700        $8,800                          $7,700  

DVDs            $13,900       $12,700                         $12,700

The Lower cost                                                      $30,400

match each type of restriction with one of its effects.

a. land-use laws

b. labor laws

c. banking regulations

a. controlled development of towns and cities

b. protection of young workers

c. greater financial stability