Freds Outlet Super Store paid $25,500 for inventory (historical cost). At year-end, this inventory had a replacement
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Fred’s Outlet Super Store paid $25,500 for inventory (historical cost). At year-end, this inventory had a replacement cost of $24,000, a net realizable value of $26,000 (selling price $28,000 minus disposal costs $2,000), and a net realizable value minus a normal profit of $23,000 (net realizable value $26,000 minus normal profit $3,000).
What is the amount of inventory write-down required by U.S. generally accepted accounting principles (U.S. GAAP) and by International Financial Reporting Standards (IFRS)?
Related Book For
Intermediate Accounting Reporting and Analysis
ISBN: 978-1285453828
2nd edition
Authors: James M. Wahlen, Jefferson P. Jones, Donald Pagach
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