Homework Answers
US GAAP: Lower of cost or net realizable value; NRV means expected selling price less expected selling cost
Net realizable value= $9000 - $500 = $8500
cost $12000
Value= $8500
IFRS: Lower of cost or net realizable value; NRV means best approximation of how much "inventories are expected to realize."
Therefore, NRV = replacement cost = $7000
cost = $12000
value = $7000
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Problem 2 (10 points) The following inventory information was taken from the records of ABC Co....
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