What value will the closing inventory of razor be reported

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Point 1: On 30 September 2019, Razor Ltd's closing inventory was counted and valued at its cost of $1m. Some items of the inventory which had a cost of N$210 000 had been damaged in a flood (on 15 September 2019) and are not expected to achieve their normal selling price which is calculated to achieve a gross profit margin of 30%

Point 2: The sale of these goods will be handled by an agent who sells them at 80% of the normal selling price and charges Razor a commission of 25%.

Question 1: At what value will the closing inventory of Razor be reported in its statement of financial position at 30 September 2019

Reference no: EM132499472

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