(a) Given the following inventory values, compute inventory valuation under both IFRS and U.S. GAAP (they are the same!) Assume the three products are from different product lines, so they will be valued item by item. Selling costs are 7% of selling price.

Product AA: Cost (C) = $300; Selling price (SP) = $315 Product BB: C = 125; SP = 142 Product CC: C = 80; SP = 86

(b) Prepare the necessary journal entry based on your computations in Part (a). You will have one entry.

(c) In the second year, under IFRS, briefly describe the computations and journal entries you would make. Be very specific!