Question 4 (25 marks) The following information is abstracted from balance sheet of Center Technology Corporation: Historical cost $12,000 Replacement cost $7,000 Expected selling Price $9,000 Expected selling cost $500 Normal profit margin 50% of price Required: 1. Describe how IFRS and U.S. GAAP differ in their approach to recognition of inventory. (8 marks) 2. What should the balance sheet report for Inventory under IFRS and U.S. GAAP? (6 marks) 3. Assume that the expected selling price increases to $13,000 (all the rest of the facts are the same). What should the balance sheet report for Inventory under IFRS and U.S. GAAP? Prepare the necessary adjustment to inventory. (6 marks) 4. Determine and explain the impacts of the above adjustment on financial statement analysis. (5 marks) Question 5 (25 marks)