AB Company prepares its financial statement using US GAAP They adopted the LIFO method of accounting for inventory several years ago You are trying to analyze their results for 2022 as if they were on IFRS You have been given the following information for the income statement and balance sheet, which is based on the LIFO method (4 Points) 2022 Income Statement Excerpt Sales $11,500,000 COGS 9,700,000 Gross Margin $1,800,000 Balance Sheet Excerpt 12 31 21 12 31 22 Inventories (FIFO) $650,000 $720,000 LIFO Adjustment (110,000) (135,000) Inventories (LIFO) $540,000 $585,000 A Compute the gross margin for AB Company, assuming they used the FIFO method of accounting for inventories B Ignoring the impact of taxes, what is the difference in shareholders' equity between the US GAAP and IFRS financial statements at 12 31 22 Indicate which is greater (i e , is shareholders' equity US GAAP higher lower same as compared with IFRS and by what amount $)

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Question: AB Company prepares its financial statement using US GAAP. They adopted the LIFO method of accounting for inventory several years ago. You are trying to

AB Company prepares its financial statement using US GAAP. They adopted the LIFO method of accounting for inventory several years ago. You are trying to analyze their results for 2022 as if they were on IFRS. You have been given the following information for the income statement and balance sheet, which is based on the LIFO method. (4 Points)

2022 Income Statement Excerpt:

Sales		$11,500,000
COGS		9,700,000
	Gross Margin	$1,800,000

Balance Sheet Excerpt:

	12/31/21	12/31/22
Inventories (FIFO)	$650,000	$720,000
LIFO Adjustment	(110,000)	(135,000)
Inventories (LIFO)	$540,000	$585,000

A. Compute the gross margin for AB Company, assuming they used the FIFO method of accounting for inventories.

B. Ignoring the impact of taxes, what is the difference in shareholders' equity between the US GAAP and IFRS financial statements at 12/31/22? Indicate which is greater (i.e., is shareholders' equity US GAAP higher/lower/same as compared with IFRS and by what amount $)?

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