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patriot [66]
3 years ago
9

The original cost of an item of inventory is above its replacement cost. The item’s replacement cost is below its net realizable

value but is higher than its net realizable value minus a normal profit. Under the lower of cost or market method, the inventory item should be valued at:________.
A. Net realizable value
B. Original cost
C. Net realizable value less normal profit margin
D. Replacement cost
Business
1 answer:
creativ13 [48]3 years ago
5 0
The answer would be original cost
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Answer:

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Since only issue price is given, so we assume it is in percentage form because the number of shares is not given in the question. So, we assume this.  

In mathematically,  

Cash proceeds = Face value × 0.97

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