6. To determine the amount at which inventory should be reported on the December 31, Year 1, balance sheet, Holland Company compiles the following information for its inventory of Product Z on hand at that date:

Historical cost... $20,000

Replacement cost.. 14,000

Estimated selling price.. 17,000

Estimated costs to complete and sell. 2,000

Normal profit margin as a % of selling price 20%

The entire inventory of Product Z that was on hand at December 31, Year 1, was completed in Year 2 at a cost of $1,800 and sold at price of $17,150.

Required:Compute the carrying value of inventory at the end of Year 1, any losses/ gains at the end of Year 1 and compute the inventory related expense in Year 2:

(1) under IFRS (with average cost assumption); and

(2) under US-GAAP (with LIFO cost assumption).