1. With respect to accounting for inventories, which of the following is a difference that exists for IFRS, as opposed to U.S. GAAP? A. There is required recognition of certain development costs. B. The weighted average method of inventories is prohibited. C. The specific identification method of inventories is only allowed when goods are interchangeable D. The FIFO method of inventories is prohibited 2. Fan Corporation sells tires. At the beginning of the year, Fan Corp. had 50 tires in its inventory account. The tires had been purchased for $40 cach during the prior year. Fan Corp purchased additional tires twice during the year. On May 1 Fan purchased 30 tires for S42 per tire and on August 1 Fan purchased 20 tires for $44 per tire. During the year, Fan Corp sold 80 tires. Assuming Fan Corp. follows IFRS and uses FIFO, calculate ending inventory and cost of goods sold. How does ending inventory and cost of goods sold change if Fan Corporation follows US GAAP and uses LIFO? A. US GAAP inventory exceeds IFRS by S80 B. US GAAP inventory exceeds IFRS by S80 and IFRS cost of goods sold exceeds US GAAP by 580 C. IFRS inventory exceeds US GAAP by 580 D. None of items listed are possible E. IFRS cost of goods sold exceeds US GAAP by S80 3. Inventory Information: Historical Cost $50,000 Replacement Cost $42.000 Net realizable value less normal profit $37,000 Estimated Selling Price $65,000 Estimated costs of complete S12,000 Estimated cost to make sell S6,000 According to IFRS, what dollar amount should be written down for decline in inventory value? A. $13,000 B. $14,500 C. $8,000 D. $15.500 E. $3,000