The two limits to market value ie the ceiling and the floor

Question

1. Presented below is information related to Rembrandt Inc.'s inventory. Determine the following:

(a) The two limits to market value (i.e., the ceiling and the floor) that should be used in the lower-of-cost-or-market computation for skis;

(b) The cost amount that should be used in the lower-of-cost-or-market comparison of boots; and

(c) The market amount that should be used to value parkas on the basis of the lower-of cost-or-market.