Under GAAP, for purposes of applying the lower-of-cost-or-market (LCM) to inventory balances, the "floor" is equal to:
a. the net realizable value plus a normal profit margin.
b. the net realizable value.
c. the estimated selling price in the ordinary course of business plus reasonably predictable costs of completion and disposal.
d. the net realizable value less a normal profit margin.
Answer: d. the net realizable value less a normal profit margin.
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