Data related to the inventories of kimzey medical supply are presented below: surgical surgical rehab rehab equipment supplies equipment supplies selling price $ 260 $ 120 $ 340 $ 165 cost 170 90 250 162 replacement cost 240 80 235 158 costs to sell 30 5 25 10 normal gross profit ratio 30 % 30 % 30 % 20 % in applying the lower of cost or market rule, the inventory of surgical equipment would be valued at:

$170

Explanation:

Kimzey Medical Supply's merchandise inventory:

                  Surgical equip.  Surgical supplies  Rehab equip.  Rehab  supplies

Selling price          $260              $100                   $340                    $165

Cost                        $170               $90                    $250                    $162

If we apply the lower of cost or market rule for determining the value of surgical equipment, its value would be: $170 < $260

When we use the lower of cost or market rule, we should value our inventory at the lowest value between original purchase cost and current price.

our agriculture industry and our business industry

you have to put the parentheses like this:

in fact, you have to perform the operation inside parentheses first, and then proceed in order: