iii. Under both the LIFO and FIFO methods, the company's ending inventory had a historic cost of $300,000 at 12/31/2020. The U.S GAAP financials used the LIFO method, and reported an impairment loss on inventory within the calculation net income for 2020. The IFRS financials should use the IAS 2 FIFO method of valuing ending inventory.

The impairment losses should be calculated using the following inventory data:

Historic cost of inventory (under both LIFO and FIFO) $620,000

Replacement cost $500,000

Selling price $600,000

Costs to prepare and sell $80,000

Normal profit margin 10%