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Question - Sage Pvt. Ltd (SPL) manufactures and sells 1300 CC. Motor Cars to its customers for Rs.1,500,000 per car. The stock of cars was included in the closing inventory as of 31 December 2019 at a cost of Rs.1,000,000 per car. The competitor launched the new 1300 CC hybrid cars on 31 December 2019 for Rs.1,800,000 per car. During the final audit the auditors noted that the subsequent selling price for the Cars at 15th January 2020 was Rs.1,400,000 per car. Furthermore, inquiry reveals that during the physical stock take, a car is damaged. Accordingly, SPL in the following week, spent a total of Rs.500,000 for repairing.
Required - Compute the amount of: a) Net realizable value of the damaged cars b) inventory write-down (loss) to the cars?
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