(Questions #13-H14 Lower ofCost or NRV): The following inventory information was taken from the records of $12,000 8,000 Kleinfeld Inc.: Historical cost Replacement cost Expected selling price Expected selling cost Normal profit margin 750 20% of selling price 13. 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 13b) Required: Journalize the write-down of inventory (ifa write-down is needed) ccount Name Debit Credit Assume after your adjustment (in above problem #14) 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 14. 14b) Required: Journalize the write-down reversal (ifa reversal is needed) Account Nam Debit Credit (Questions #13-H14 Lower ofCost or NRV): The following inventory information was taken from the records of $12,000 8,000 Kleinfeld Inc.: Historical cost Replacement cost Expected selling price Expected selling cost Normal profit margin 750 20% of selling price 13. 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 13b) Required: Journalize the write-down of inventory (ifa write-down is needed) ccount Name Debit Credit Assume after your adjustment (in above problem #14) 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 14. 14b) Required: Journalize the write-down reversal (ifa reversal is needed) Account Nam Debit Credit