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Question - Purple company had determined its December 31, 2019 inventory on a FIFO basis at P200,000. Information pertaining to that inventory follows:
Estimated selling price P204,000
Estimated costs of disposal 10,000
Normal Profit 30,000
Purple records losses that result from applying the lower of cost and net realizable value rule.
Required - What is the amount of loss that Purple Company should recognize at December 31, 2019?
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