ACC 304 All Assignments ACC 304 All Assignments | Page 116

c. When a non-cancellable contract exists to sell the inventory.
d. When there is a controlled market with a quoted price applicable to
all quantities.
S36. Recording inventory at net realizable value is permitted, even if
it is above cost, when there are no significant costs of disposal involved
and
a. the ending inventory is determined by a physical inventory count.
b. a normal profit is not anticipated.
c. there is a controlled market with a quoted price applicable to all
quantities.
d. the internal revenue service is assured that the practice is not used
only to distort reported net income.