The following inventory information above was taken from the records of Stock Ltd:

Historic cost $24,000

Replacement cost $16,000

Selling price (SP) $20,000

Costs to complete and sell $1,000

Normal profit margin 10% of SP

6. Under U.S. GAAP, how would ending inventory be measured if LIFO was used?

A) $17,000

B) $16,000

C) $19,000

D) $20,000

7. Under U.S. GAAP, how would ending inventory be measured if FIFO was used?

A) $17,000

B) $16,000

C) $19,000

D) $20,000

8. Under IAS 2, what figure should the balance sheet report for ending inventory?

A) $17,000

B) $16,000

C) $19,000

D) $20,000

The following information was taken from the records of Impress Ltd as of December 31, 2020:

Carrying value of a property $400,000

Selling price (fair value) of the property $340,000

Cost of disposing of the property $12,000

Expected future cash flows from use $300,000

Present value of expected future cash flows from use $252,000

9. Using U.S. GAAP, calculate the impairment loss on the property

A) $148,000

B) $100,000

C) $60,000

D) $72,000

10. Using IAS 36, calculate the recoverable amount for the property

A) $300,000

B) $328,000

C) $252,000

D) $3400,00

11. Using IAS 36, calculate the impairment loss on the property under IFRS.

A) $100,000

B) $148,000

C) $60,000

D) $72,000