Data related to the inventories of mountain ski equipment and supplies is presented below: skis boots apparel supplies selling price $ 180,000 $ 150,000 $ 120,000 $ 60,000 cost 128,000 133,000 90,000 48,000 replacement cost 120,000 130,000 110,000 50,000 sales commission 10 % 10 % 10 % 10 % normal gross profit ratio 20 % 20 % 15 % 15 % in applying the lower of cost or market rule, the inventory of supplies would be valued at:

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)