Tamarack Co

Multiple Choice

Tamarack Co.prepares its estimate of LCM using the net realizable value.Inventory item 101 cost $45 and its current replacement cost is $50.The item is currently selling in the market for $55 and selling costs are estimated to be $6.Tamarack expects to earn a profit of $4 on the sale of this item.In its year-end financial statements,Tamarack Co.should value this item at

A) $50.
B) $45.
C) $49.
D) $55.