Nelson Corporation is required to record an inventory write-down of $2,500 as a result of using the lower-of-cost-or-market rule. Which of the following shows how this entry would affect the financial statements? Assets=Lia.+Stk.EquityRev.-Exp.=Net Inc.Stmt ofCash FlowsA.(2,500) NA (2,500)NA 2,500 (2,500)NAB.(2,500) (2,500) NANA NA NANAC.NA (2,500) 2,5002,500 NA 2,500NAD.(2,500) NA (2,500)NA 2,500 (2,500)(2,500)

A. Option A
B. Option B
C. Option C
D. Option D


Answer: A

Business

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