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4. ABC company suffered inventory loss from market declines in April 2017. As a result, the company wrote off $7,000 cost of inventory. However, the price of the same inventory was fully recovered in October 2017. Which section of the FASB ASC explicitly states whether or not recovery of such inventory loss can be written up? (The citation must follow xxx-xx-xx-xx or xxx-xx-xx-x format)

Question

4. ABC company suffered inventory loss from market declines in April 2017. As a result, the company wrote off $7,000 cost of inventory. However, the price of the same inventory was fully recovered in October 2017. Which section of the FASB ASC explicitly states whether or not recovery of such inventory loss can be written up? (The citation must follow xxx-xx-xx-xx or xxx-xx-xx-x format)

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As per ASC Section 330-10-35-14, when the cost of the inventory has been written down below its cost at the end of any accounting year, the reduced cost of inventory is considered the cost of the inventory for subsequent accounting years.

As per S...

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