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

Historical cost	$	195,000
Replacement cost		189,400
Net realizable value		190,650
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.
	inventory on december 31,2015, balance sheet and Amount reported in net income(loss)

b.	Determine the adjustments that Lisali would make in 2015 to reconcile net income and stockholders equity under U.S. GAAP to IFRS. (If there is no reconciliation adjustment select "No adjustment is required to".)