Inventory Write-Down Palmquist Company has five different inventory items and applies the inventory valuation ruies on an individual item basis. The normal marikup on all items is 20% of cost. The following information is obtained from the company's records: Kequirea: 1. Assume that Palmquist uses the FIFO cost flow assumption. Compute the correct inventory value under the lower of cost of net realizabie value rule: Round your answers to the nearest cent. Compute the total inventory value if the lower of cost or net realizable value is applied to each indlifiual item. 2. Assume that Palmquist uses the LIFO cost flow assumption. Compute the correct inventory value under the lower of cost or market rule. Round your answers to the nearest cent. Compute the total inventory value if the lower of cost or market is applied to each individual item. 3. Assume that. Palmquist uses IFRS, Compute the correct inventory value under the lower of cost or net realizable value rule. Round your answers to the nearest cent. Compute the total inventory value if the lower of cost or market is applied to each individual item. 5 4. Explain the differences between the inventory valuations reported under IFRS and U.S. GAAP. The inventory valuation reported under IFRS is: the inventory valuation reported under U.S. GAAP. This difference arises because IFRS define market value as and do not consider Therefore, IFRS will result in market values that are always greater than or equal to those reported under U.S. GAAP. Because some of the U.S. GAAP inventory (items 1,3 , and 4) was valued at either, replacement cost or net realizable value minus a normal profit margin, the IFRS lower of cost or market valuation of inventory will be the U.S. GAAP inventory valuation