NRV is defined as the estimated selling price in the ordinary course of business less estimated costs of completion and costs necessary to make the sale. Which option best captures this definition?

NRV is defined as the estimated selling price in the ordinary course of business less estimated costs of completion and costs necessary to make the sale. Which option best captures this definition?

• A. The cost to produce the item
• B. The estimated selling price in the ordinary course of business minus estimated costs of completion and to make the sale
• C. The market value for replacement
• D. The asset's original cost

Answer: (B)