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The following inventory information was taken from the records of GlobeKom Ltd: Historical cost   $12,000 Replacement...

The following inventory information was taken from the records of GlobeKom Ltd:

Historical cost   $12,000
Replacement cost   $9,000
Expected selling price   $10,000
Expected selling cost   $1,500
Normal profit margin   10% of selling price
Under IAS 2, what is the net realizable value for inventory?

A. 10,000

B. 9,500

C.9,000

D. 8,500

Under IAS 2, what should be the impairment loss for Inventory

A.0

B.2,000

c.3,500

D.1,500

Under U.S. GAAP, what should be the market value for Inventory (assuming LCM method is used)?

A.9000

B.9,500

C.8,500

D.10,000

Under U.S. GAAP, what should be the impairment loss for inventory (assuming LCM method is used)?

A. 0

B.2,000

C.1,500

D.3500

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ekkarill92 answered 2 years ago
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