Net Realizable Value
Net Realizable Value (NRV) is the estimated selling price of an asset in the ordinary course of business minus the estimated costs to complete, dispose of, and transport it.
Example: Example: A retailer has inventory costing $120,000; the estimated selling price is $130,000 and selling costs are $15,000. NRV is $115,000, so the inventory would be carried at $115,000 if cost exceeds NRV.
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