P8-1 Show work

P8-1 Palmquist Company has five different inventory items that it values by the lower of cost or market rule. The normal markup on all items is 20 % of cost. The following information is obtained from the company's records: Item 1 2 3 4 5 Units 500 400 300 200 100 cost $10.00 $8.00 $15.00 $18.00 $25.00 Repacement Cost $9.10 $8.10 $13.50 $12.00 $25.50 Net Realizable Value $9.20 $7.80 $14.00 $17.00 $25.30 Required: 1. Compute the lower of cost or market value for each item. 2. Compute the total inventory value if the lower of cost or market is applied to (a) each individual item and (b) the inventory as a whole. 3. Explaine the reason for the difference detween the two values computed in Requirement 2. 4. Compute the lower of cost or market value for each item if Palmquist uses IFRS