Page 2 of 4 4. To determine the amount at which the inventory should be reported on the December 31, Year1, balance sheet, Monroe Company compiles the following information for its inventory of Product Z on hand at that date: Historical Cost Replacement Cost Estimated Selling Price Estimated Costs to complete and sell Normal profit margin as a percentage of selling price $20,000 14,000 17,000 2,000 20% The entire inventory of Product Z that was on hand at De31, Year 1 was completed in Year 2 at a cost of $1,800 and sold at a price of $17,150. a. Determine the impact that Product Z has on income in Year 1 and Year 2 under (1) IFRS and (2) USGAAP b. Summarize the difference in income, total assets, and total stockholders' equity using the two different sets of accounting rules over the two year period