This is simple. If someone sells you something that they are claiming is real and genuine and then when you receive the item and find out it is a fake you can be sure the person is being dishonest about the product just to make a profit. Therefore, your answer is B). Hope this helps.
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Answer:
Option (b) is correct.
Explanation:
Correct amount of inventory to be reported:
Amount of inventory as per physical verification = $320,000
Cost of goods under consignment to Herschel Corporation = $47,000
Value of inventory to be reported:
= Amount of inventory as per physical verification + Cost of goods under consignment to Herschel Corporation
= $320,000 + $47,000
= $367,000