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ssessment Saved Data related to the inventories of Kimzey Medical Supply are presented below Rehab Surgical Equipment Surgica
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Answer #1

Ceiling = Net realizable value = Selling price - Costs to sell

= $355 - $68

= $287

Floor = Net realizable value - Normal gross profit ratio

= $287 - (355 * 20%)

= $216

Replacement cost = $335

Market is the middle value of ceiling, floor and replacement cost.

Market value = $287

Cost = $265

Lower of cost or market = $265

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