KP Comments V 249 FO V Sens Analyze Data Font Cells Analysis Serg U V Kavya Patel File Home Insert Page Layout Formulas Data Review View Help Calibri 11 A M == a Wrap Text General [6 Paste BI U - A- E Merge & Center Conditional Format as Cell $ % 98 Insert Delete Format Sort & Find & Formatting Table Styles Filter Select Undo Clipboard Alignment Number Styles Editing A1 VX fx In an annual audit of Pacesetter Company Limited, you find that a physical inventory count on December 31, 2021, showed merchanidise of B D E F G H 1 J KL M N O P Q R S T 1 In an annual audit of Pacesetter Company Limited, you find that a physical inventory count on December 31, 2021, showed merchanidise of $ 3,502,923 2 You also discover the following items were excluded from the physical count: 3 1 Merchanise of $61,000 is held by Pacesetter on consignment from Goody Corporation. 4 2 Merchandise costing $33,000 was shipped by Pacesetter FOB distination to Alphabet Soup Co. on December 31, 2021. This merchandise was accepted by Alphabet Soup Co. on January 6, 2022. 5 3 Merchandise costing $46,000 was shipped FOB shipping point to MCS Company on December 29, 2021. The merchandise was received by MCS on January 10, 2022. 6 4 Merchandise costing &473000 was shipped FOLB distination from WSL Inc. to Pacesetter on December 30, 2021. Pacesetter received the items on January 8, 2022. 7 5 Merchandise costing $51,000 was shipped by DBT Ltd. FOB shipping point on December 30, 2021, and received by Pacesetter's office on January 2, 2022. 8 8 6 Pacesetter had excess inventory and incurred additional $1,500 in storage costs due to delayed shipment in transaction (3) above. 9 9 7 Pacsetter incurred $2,000 for interest expense on inventory it purchased through delayed paypment plans in fiscal 2021. 10 11 Required: [16 marks] 12 [a] Based on the information provided above, calculate the amount of inventory that should appear on Pacesetter's December 31, 2021 balance sheet. [2 marks] 13 [b] Under what circustances can a private company reporting under ASPE capitalize interests costs incurred to finance inventory? [2 marks] 14 [C] Under what circumstances can a public company reporting under IFRS capitallize interest costs incurred to finance inventory? 15 16 17 18 19 20 21 22 23 24 25 26 27 e E 28 Cover Sheet Question 1 Question 3 Question 2 ENG HIS