The following inventory information was taken from the records of Kleinfeld Inc.: Historical cost $12,000...
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The following inventory information was taken from the records of Kleinfeld Inc.: Historical cost $12,000 Replacement cost $ 7,000 Expected selling price $ 9,000 Expected selling cost $ 500 Normal profit margin 50% of price 17. Under the U.S. GAAP, what should the balance sheet report for inventory? A. $8.500 B. $7,000 C. $9,000 D. $10,000 18. Under IAS 2, what should the balance sheet report for Inventory? A. $7.000 B. $8,500 C. $7,600 D. $9.000 19. Under IAS 2. what adjustment needs to be made after an inventory write-down if the selling price subsequently increases? A. No adjustment is necessary. Once inventory is written down, it cannot be increased under IASB standards. B. It should be sold at the replacement cost. 5 C. The inventory write-down should be reversed to bring it in line with the new net realizable value. D. Recovery of inventory loss should be debited to reflect the increase in inventory value
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