Answer
Acceptable.
Work Step by Step
This is acceptable because taking the lower of the market/cost is in line with generally accepted accounting principles (GAAP).
Intermediate Accounting 14th Edition
by Kieso, Donald E.; Weygandt, Jerry J.; Warfield, Terry D.
Published by
Wiley
ISBN 10:
0470587237
ISBN 13:
978-0-47058-723-2
Chapter 2 - Conceptual Framework for Financial Reporting - Questions - Page 69: 30d
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