Problem Balance sheet format, terminology, and accounting methods. Exhibit 4.4 presents the balance sheet of Paul Loren Compeny for Years 10 and 9. This belance sheet uses the terminology, format, and accounting methods of U.S. GASP, and Psul Loren reports results in millions of U.S. dollars. (Adspted from the financial statements of Polo Ralph Lauren.) In sddition to the item: reported in Psul Loren's belance sheet, sssume the following hypothetical information is available to you: - In Year 10 Psul Loren revalued a bulding with an acouisition cost of $200 milion downward, to its cunrent fair velue of $182 milion. - In Year 10 Psul Loren wrote up the value of inventory, with a carrying velue of $135 million, to its fair value of $165 milion. - Included in commitmenta and contingencies for Year 10 is a lewsuit filed sgsinst Paul Loren for breach of contract. Psul Loren estimstes the following range of outcomes for this lawsuit: 70 so chance of damege: of $100 milion, 2096 chance of damages of $500 million, and 10% chance of damses of S1 bilion. a. Prepare a belance sheet for Paul Loren for Year 10, following the format, terminology, and accounting methods required by U.S. GAA.P. lgnore any income tax effects of any revisions to reported amount:. b. How, if at al, would your snswer to part a differ if Psul Loren used IFRS? EXMIBIT 4.4 Paul Loren Company Balance Sheets For Years 10 and 9 (amounts in millions of U55) (Problem 32)