Upon Taking a Physical Count of Its Inventory, Damber Corp

Multiple Choice

Upon taking a physical count of its inventory, Damber Corp. determines that $5,500 of goods have become damaged due to a water leak in the warehouse. It is decided that $2,300 of the goods are not sellable and the remainder can be sold at a reduced price of $2,750. The cost incurred to sell the goods will be $800. The damaged goods should be included in inventory at a value of:

A) $3,200
B) $3,550
C) $5,050
D) $1,950
E) $450