Lisali Company gathered the following information related to inventory that it owned on December 31, 2015:

Historical Cost	$240,000
Replacement Cost	$234,300
Net Realizable Value	$235,150
Normal Profit Margin	20%

a. Determine the amount at which Lisali should carry inventory on the December 31, 2015, balance sheet and the amount, if any, that should be reported in net income related to this inventory using (1) U.S. GAAP and (2) IFRS.

	US GAAP	IFRS
Inventory on 12/31/15, balance sheet
Amount reported in net income

b. Determine the adjustments that Lisali would make in 2015 to reconcile net income and stockholders equity under U.S. GAAP to IFRS.

2015 Adjustments

Amount added to	US GAAP Net Income	$
Amount added to	US GAAP Stockholder's Equity	$