Answer: he could benefit from adopting such a system, but should also consult with an accountant for advice about what's best.
Answer:
$365,000
Explanation:
The computation of the inventory reported on the balance sheet is shown below:
<u>Product Cost NRV Lower cost</u>
A $115,000 $125,000 $115,000
B $95,000 $75,000 $75,000
C $175,000 $180,000 $175,000
Total $365,000
Answer: According to Ian Redpath and Greg Urban, the threshold amount required for conclusively stating whether a substantial basis adjustment is mandatory is $250,000. The amount required is $250,000 in order for one to know whether they are in need for a substantial basis reduction or maybe not. It's required when the amount indeed exceeds $250,000.