(Questions #12-#13 Lower of Cost or NRV): The following inventory information was taken from the records of Kleinfeld Inc.: Historical cost $12,000 Replacement cost 10,000 Expected selling price 8,000 Expected selling cost 750 Normal profit margin 20% of selling price 12. Under IAS 2, what should the balance sheet report for Inventory? a $7,250 b. $8,000 c. $10,000 d. $12,000 e. None of the Above 12b) Required: Journalize the write-down of inventory (if a write-down is needed): Account Name Debit Credit 13. Assume after your adjustment in above problem #13) the expected selling price of inventory increases to $9,500. (All other facts remain the same. What adjustment to inventory should be made under IAS 2? a. Inventory should be increased (debited) by $1,000. b. Inventory should be increased (debited) by $1,500. c. No adjustment should be made to inventory once it is written down. d. Inventory should be increased (debited) by $1,000. e. None of the above. 13b) Required: Journalize the write-down reversal (if a reversal is needed): Account Name Debit Credit