Assume that Fraud Corp. had the following values for ending inventory on December 31, 2017.

Inventory cost (Using FIFO) $ 10

Inventory replacement cost $ 8

Inventory NRV (net realizable value) $ 11

Inventory profit margin $ 4

a. Under U.S. GAAP, what is the market value of ending inventory?

b. Under U.S. GAAP, prepare the impairment (LCM: Lower of Cost or market) journal entry if necessary.

c. Under U.S. GAAP, what is the carrying value (book value) of inventory which will be reported on the 2017 Balance Sheet?

d. Under IFRS, what is the market value of ending inventory?

e. Under IFRS, prepare the impairment (LCM: Lower of Cost or market) journal entry if necessary.

f. Under IFRS, what is the carrying value (book value) of inventory which will be reported on the 2017 Balance Sheet?