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Determine the inventory to be reported using lower of cost or market under GAAP and IFRS (Show all calculations) CostReplacement costsales pricenormal profit margin A14615016020%

Determine the inventory to be reported using lower of cost or market under GAAP and IFRS (Show all calculations)

CostReplacement costsales pricenormal profit margin

A14615016020%

Selling costs are 10% of sales price

Assume in year 2 the sales price is now $170 and replacement cost is $160, What value is the inventory reported under GAAP and IFRS?

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