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Refer to the situation described in Exercise 9-3. Assume that Tatum Company prepares its financial statements according to IFRS.
Required:
1. Determine the balance sheet inventory carrying value at December 31, 2011, assuming Tatum applies the LCM rule to individual products.
2. Prepare a journal entry to record the inventory write-down, if necessary.
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Does this practice help or hinder activists?
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