medium · Financial Accounting assets

Vanguard Retailers reports under IFRS and uses the weighted-average cost method. A batch of inventory cost $200,000. Due to a market downturn, the NRV is currently $180,000. In the following year, the market recovers and the NRV climbs to $210,000.

What is the maximum value Vanguard can report for this inventory batch in the second year?

  1. $180,000
  2. $210,000
  3. $190,000
  4. $200,000

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