Inkjet Inc. provided the following inventory information:

Historical Cost	$12000
Replacement Cost	$7000
Original Expected Selling Price	$9000
Expected Selling Cost	$500
New Expected Selling Price	$13000
Normal Profit Margin	0.45

1. Under IAS 2, what should the balance sheet report for inventory (use original numbers)?
2. Under U.S. GAAP, what should the balance sheet report for inventory (use original numbers)? You should assume the company does not use LIFO or the Retail Inventory Method.