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FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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
Transcribed Image Text:### Coronado Corporation's Ending Inventory Assessment
Coronado Corporation has provided data regarding the cost and Net Realizable Value (NRV) of four items in its ending inventory. The details are as follows:
| Item | Cost | Net Realizable Value (NRV) |
|------------|-------|----------------------------|
| Jokers | $2,480| $2,604 |
| Penguins | $6,200| $6,138 |
| Riddlers | $5,456| $5,735 |
| Scarecrows | $3,968| $4,749 |
### Instructions for Determination
Determine the following: the Lower of Cost or Net Realizable Value (LCNRV) for each item.
| Item | LCNRV |
|------------|-------|
| Jokers | $ |
| Penguins | $ |
| Riddlers | $ |
| Scarecrows | $ |
**Guidance on LCNRV Calculation:**
- **LCNRV** is the lower value between the cost and the NRV.
- Compare the cost and NRV for each item.
- Enter the lower value in the LCNRV column for each item.
This exercise helps in aligning inventory valuation with accounting standards by recognizing potential losses.

Transcribed Image Text:**Instructions for LCMRV Evaluation**
**(1) Determine the amount of write-down, if any, using an item-by-item LCMRV evaluation. (If no write-down, enter 0 for the amounts.)**
| Item | Write-down |
|------------|------------|
| Jokers | $ |
| Penguins | $ |
| Riddlers | $ |
| Scarecrows | $ |
**(2) Determine a total category LCMRV evaluation. (If no write-down, enter 0 for the amount.)**
Total category LCMRV: $______
---
**Explanation**
The table above provides a framework for determining the write-down amounts for various items, using an item-by-item evaluation method. This involves assessing each item (Jokers, Penguins, Riddlers, Scarecrows) individually to determine if a write-down is necessary. If not, you should enter "0" for the amounts.
Additionally, there is an option to calculate the total category LCMRV if a broader category evaluation is required, with a similar instruction to enter "0" if no write-down is needed.
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