Please determine the amount at which the inventory should be reported on December 31 Year 1 balance sheet using the following information:

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 percentage of selling price	20%

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

Determine the impact on income in Year 1 and Year 2 under (1) IFRS and (2) US GAAP.