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An organization has 1,000 units of a defective item in stock.

An organization has 1,000 units of a defective item in stock. Per unit, market price is $10; production cost is $4; and the defect selling price is $5. What is the carrying amount (inventory value) of defects at year-end?

A.

$0

B.

$4,000

C.

$5,000

D.

$10,000

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