To determine the amount at which inventory should be reported on the December 31, Year 1 balance sheet, l'vlonroe 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 ....................................... $1?,000 - Estimated costs to complete and sell ............................ $ 2,000 - Normal prot margin as a percentage of selling price ............... 20% The entire inventory of Product 2 that was on hand at Dec. 31, Year 1 was completed in year 2 at a cost of$1,300 and sold at a price of $17,150. Determine the impact that Product Z has on income in Year1 and Year 2 under IFRS and US. GAAP