When following U.S. GAAP, the lower-of-cost-or-market rule for inventory requires a firm to report ________.
Question 10 options:
the inventory at the higher amount of cost or market on the balance sheet
the difference between the cost basis and the market-based measure of inventory as a gain on the income statement
the inventory at cost if the market value of inventory is higher than its cost basis
the inventory at cost if the market value of inventory is lower than its cost basis