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A company estimates it can sell its inventory for \$200,000 with disposal costs of \$20,000. What is the net realizable value of the inventory?
A company estimates it can sell its inventory for \$100,000 with disposal costs of \$10,000. What is the net realizable value of the inventory?
What does the rule of conservatism in accounting emphasize?
What is the primary purpose of the 'lower of cost or market' rule?
A retailer purchased goods for \$60,000. Due to market conditions, the goods can now be sold for \$55,000 with disposal costs of \$3,000. What is the inventory value according to the lower of cost or market rule?
A company has inventory with a historical cost of \$150,000 and a market value of \$140,000. What should the company do according to the rule of conservatism?
A company has inventory with a historical cost of \$100,000 and a market value of \$90,000. What should the company do according to the rule of conservatism?
What is the effect of a write-down of inventory on the financial statements?
If inventory is marked down from a historical cost of \$75,000 to a market value of \$65,000, what is the loss amount?
If inventory is marked down from a historical cost of \$95,000 to a market value of \$85,000, what is the loss amount?