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

Historical cost $187,500

Replacement cost 178,100

Net realizable value 183,800

Normal profit margin 20%

a. Determine the amount at which Lisali should carry inventory on 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.

U.S. GAAP IFRS

Inventory on December 31,2015, balance sheet

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 adjustments select "No adjustment is required to".)

2015 Adjustments

U.S. GAAP Net income

U.S. GAAP Stockholders' equity