Reference no: EM132668967

The following inventory information was taken from the records of GlobeKom Ltd:

Historical cost $12,000

Replacement cost $9,000

Expected selling price $10,000

Expected selling cost $1,500

Normal profit margin 10% of selling price

Problem 1: Under IAS 2, what is the net realizable value for inventory?

A. 10,000

B. 9,500

C. 9,000

D. 8,500

Problem 2: Under IAS 2, what should be the impairment loss for Inventory

A.0

B.2,000

c.3,500

D.1,500

Problem 3: Under U.S. GAAP, what should be the market value for Inventory (assuming LCM method is used)?

A.9000

B.9,500

C.8,500

D.10,000

Problem 4: Under U.S. GAAP, what should be the impairment loss for inventory (assuming LCM method is used)?

A. 0

B.2,000

C.1,500

D.3500