Which of the Following Events Would Likely Result in a Loss

Multiple Choice

Which of the following events would likely result in a loss recognized on the write-down of inventories?

A) The additional costs resulting from an increase in oil prices caused by a hurricane destroying oil refineries.
B) Purchasing another firm for more than the value of the fair market value of the assets.
C) The value of perished products for a produce company using the allowance method for inventory
D) A drop-in price of raw materials, once scarce, but now in ample supply.