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Question - Shelby Industries is ready to launch next year's model of their best selling product. Unfortunately, they have found that customers are unwilling to pay more that $40 for last year's model. Based on the third quarter inventory values below, by how much should Shelby increase the Lower of Cost or Market reserve before closing the books for September 30th?
Description Units Market Value Inventory Cost
Remaining stock of last year's model 3,500 $40.00 $50.00
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