(Solution) - It is December 31 the end of the year and -(2025 Original AI-Free Solution)

Paper Details

It is December 31, the end of the year, and the controller of Saxton Corporation is applying the lower-of-cost-or-market (LCM) rule to inventories. Before any year-end adjustments, Saxton reports the following data:
Cost of goods sold , ........................... $445,000
Historical cost of ending inventory
As determined by a physical count ............ 58,000
Saxton determines that the current replacement cost of ending inventory is $45,000. Show what Saxton should report for ending inventory and for cost of goods sold. Identify the financial statement where each item appears.