As of January 1 of the current year, Kane owned all the 100 issued shares of Manning Corp., a calendar
year S corporation. On the 41st day of the year, Kane sold 25 of the Manning shares to Rodgers. For the
current year ended December 31 (a 365-day calendar year), Manning had $73,000 in nonseparately
stated income and made no distributions to its shareholders. What amount of nonseparately stated
income from Manning should be reported on Kane's current year tax return?
A. $56,750
B. $54,750
C. $16,250
D. $0

Example1 lcnrv: ted company uses the lower of cost or nrv method in valuing its inventory items. the inventory at december 31, 2017, consists of products a, b and c, each having 1,000 units. relevant unit data for these products appear below: item a item b item c cost $ 80 $80 $80 estimated selling price 180 100 90 estimated selling cost 30 30 30 required: using the lower of cost or net realizable value rule, determine the proper value of inventory for balance sheet reporting purposes at december 31, 2017. prepare any necessary journal entry. apply the lower of cost or nrv method: • on an individual inventory basis; • on a group basis; • on a total inventory basis. solution worksheet: inventory (on an individual basis): inventory value item nrv cost lc- item a item b item c total inventory (on a group basis): inventory value item nrv cost lc- group 1 (item a and b) group 2 (item c) total inventory (on an aggregate inventory basis): inventory value item nrv cost lc- total inv