Total stockholders equity and total assets

Assignment Help Financial Accounting

Reference no: EM134163

Question :

To evaluate the amount at which inventory could be reported on the 31^st December, Year 1 balance sheet, Monroe Company compiles the subsequent information for its inventory of product z on hand at the date:

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 of product Z that was on hand at Dec. 31, Year 1 was completed in Year 2 at cost of $1,800 and sold at a price of $17,150.

a. Det. the impact that Product Z has on income in Year 1 and Year 2 under US GAAP and IFRS

b. Summarize the difference in income, total stockholders' equity and total assets using the two different sets of accounting principles over the two year period.

Reference no: EM134163

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