Inkjet Inc. provided the following inventory information:

Historical Cost	$14000
Replacement Cost	$7000
Original Expected Selling Price	$11000
Expected Selling Cost	$500
New Expected Selling Price	$15000
Normal Profit Margin	0.25

1. Under IAS 2, what should the balance sheet report for inventory (use original numbers)?
2. Assume that subsequent to your adjustment the expected selling price increases to the new expected selling price (all the rest of the facts are the same). What adjustment, if any, to inventory should be made under IAS 2 after this event?
3. 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.
4. Under U.S. GAAP, assume that subsequent to your adjustment the expected selling price increases to the new expected selling price (all the rest of the facts are the same). What adjustment, if any, to inventory should be made after this event?

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