| Accounting 402 |
| LOWER OF COST OR MARKET--Floor and Ceiling
Application |
|
|
Case 1 |
|
Case 2 |
|
Case 3 |
|
Case 4 |
|
| Historical
Cost |
$28 |
|
$28 |
|
$28 |
|
$28 |
| Replacement Cost |
23 |
|
23 |
|
23 |
|
23 |
| Estimated selling
price |
30 |
|
34 |
|
25 |
|
40 |
| Costs to sell |
3 |
|
3 |
|
3 |
|
3 |
| Normal
Profit |
5 |
|
5 |
|
5 |
|
5 |
|
| Fill
in the following items: |
|
| Ceiling |
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|
|
| Floor |
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|
|
|
|
|
| Replacement
Cost |
|
|
|
|
|
|
|
|
|
| value--using
LCM |
|
|
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| Profit
when sold: |
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