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The following information is available regarding each unit of Brown Corporation's inventory:
Selling price ......... $5,000Costs of completion ...... 275Current replacement cost .... 2,000Normal profit margin .... 2,500
Based on this information, determine the ceiling and the floor for each unit of Brown Corporation's inventory.
Select the formula you will use to calculate the prepaid insurance balance at December 31, 2009. Then enter the amounts and calculate the balance. Round your answer to the nearest whole number.
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How does the choice of inventory valuation method affect the amount of net income reported by a company?
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