1. Company Z is a U.S-Based company that prepares its consolidated financial statements in accordance with U.S.GAAP. The company reported income in 2019 of 4,000,000 and stockholders' equity at December 12/31/2019, of 32,000,000. The CFO of Company Z wishes to determine the impact that a switch to IFRS would have on its financial statements and has engaged you to prepare a reconciliation of income and stockholders' equity from U.S.GAAP to IFRS. You have identified the inventory as a one of areas in which Company Z accounting principles based on U.S.GAAP differ from IFRS. Company z provides the following information with respect to Inventory as a one of these accounting differences: Inventory: At year-end 2019, inventory had a historical cost of 1,000,000, a replacement cost of 720,000, a net realizable value of 760,000, and a normal profit margin of 20% of net realizable value. After prepare a reconciliation schedule to convert 2019 income from a U.S.GAAP basis to IFRS, the income statement in 2019 will report (4 Points) None of these answer choices are correct Increase in income by 240.000 O Decrease in income by 240.000