Question 1 (24 marks) Pacific Trading Limited (PTL), a company which reports under IFRS, received merchandise that was damaged during shipment. Unfortunately, the contract terms were FOB Shipping Point and PTL was responsible for any damages during shipping. The amount of damage involved was too low to file an insurance claim. PTL has decided to repair and resell the damaged items as "refurbished". The following information is available: Item 1 Item 2 Item 3 Volume 500 units 300 units 100 units Cost (per unit) including allocated shipping costs $55 $17 $250 Estimated cost to rebuild (per unit) 15 6 110 Estimated sales price after being refurbished (per unit) 45 29 180 Estimated cost to sell (per unit) (e.g. commission) 4 3 18 REQUIRED 1. Calculate the net realizable value for each item of inventory