7) 14% - Determine the inventory to be reported using lower of cost or market under...

 

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7) 14% - Determine the inventory to be reported using lower of cost or market under GAAP and IFRS (Show all calculations) A COST B 165 REPLACEMENT COST 180 130 Normal profit margin and Selling cost are 10% of the selling price. Assume the cost of inventory was $130 and at the end of year I market was $120 as defined under both GAAP and IFRS. At the end of year 2 inventory market value under both GAAP and IFRS was $125. What value would the Firm report as inventory under GAAP and IFRS at the end of year one and year two? 100 170 SELLING PRICE 100 7) 14% - Determine the inventory to be reported using lower of cost or market under GAAP and IFRS (Show all calculations) A COST B 165 REPLACEMENT COST 180 130 Normal profit margin and Selling cost are 10% of the selling price. Assume the cost of inventory was $130 and at the end of year I market was $120 as defined under both GAAP and IFRS. At the end of year 2 inventory market value under both GAAP and IFRS was $125. What value would the Firm report as inventory under GAAP and IFRS at the end of year one and year two? 100 170 SELLING PRICE 100

Answer rating: 100% (QA)

At the end of year one the Firm would report 120 as inventory ... View the full answer