In an annual audit of Solaro Company Limited, you find that a physical inventory count on December 31, 2017, showed merchandise of $441,000. You also discovered items were excluded from the $441,000:

1. Merchandise of $61,000 is held by Solaro on consignment from BonBon Corporation.

2. Merchandise costing $33,000 was shipped by Solaro f.o.b. destination to XYZ Ltd. on December 31, 2017. This merchandise was accepted by XYZ on January 6, 2018.

3. Merchandise costing $46,000 was shipped f.o.b. shipping point to ABC Company on December 29, 2017. This merchandise was received by ABC on January 10, 2018.

4. Merchandise costing $73,000 was shipped f.o.b. Destination from Wholesaler Inc. to Solaro on December 30, 2017. Solaro received the items on January 3, 2018.

5. Merchandise costing $51,000 was shipped by Distributor Ltd. f.o.b. shipping point on December 30, 2017, and received at Solaro's office on January 2, 2018.

6. Solaro had excess inventory and incurred and additional $1,500 in storage costs due to delayed shipment transaction (3) above.

7. Solaro incurred $2,000 for interest expense on inventory it purchased through delayed payment plans in fiscal 2017.

Instructions:

a) Based on the information provided above, calculate the amount of inventory that should appear on Solaro's December 31, 2017 balance sheet.

b) Under what circumstances can a private company reporting under ASPE capitalize interest costs incurred to finance inventory?

c) Under what circumstances can a public company reporting under IFRS capitalize interest costs incurred to finance inventory?

d) Explain some audit procedures that the auditor would perform to satisfy the financial statement assertion for cut-off for inventory transactions and events.