For Interim Reports, an Inventory Loss from a Temporary Market

Multiple Choice

For interim reports, an inventory loss from a temporary market decline in the first quarter, which may reasonably be expected to be restored in the fourth quarter, is:

A) Recognized as a loss proportionately in each of the first, second, third, and fourth quarters
B) Recognized as a loss proportionately in each of the first, second, and third quarters
C) Not recognized as a loss in the first quarter
D) Recognized as a loss in the first quarter