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Question 15 of 25

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Section: Business Finances

Business Finances
A contractor keeps an inventory of plumbing items for sale and uses the lower of cost or market method. None of the items is held for a firm sales contract, and it does not use LIFO. At year end: sinks cost $800 (market $1,000); faucets cost $500 (market $300); valves cost $400 (market $450). According to IRS Publication 538, what is the inventory value?