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SPLOCI, Vader & Maul.
Maby a revision question..
Vader sold goods to Maul, we eliminate 20 form revenue and 20 from COS but not the loss registered by Vader.I am trying to uderstand why.
Thank you(It’s chapter 4!)
Good question
Original cost of goods must have been 25
Sold at FV of 20Inventory at lower of cost and NRV (=FV)
So we cannot increase inventory value above 20
Inventory was overvalued in books of seller in first place
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