Question
The following inventory information was taken from the records of a foreign corporation whose stock is listed on an exchange in the U.S. Historical cost
The following inventory information was taken from the records of a foreign corporation whose stock is listed on an exchange in the U.S. Historical cost $15,000 Replacement cost $11,000 Expected selling price $13,500 Expected selling cost $800 Normal profit margin $2,500 How will income under the U.S. GAAP compare to income the company reported under IFRS after reconciliation? A) Income will not be affected by the reconciliation. B) Income under U.S. GAAP will be lower by $1,700. C) Income under U.S. GAAP will be lower by $2,500. D) Income under U.S. GAAP will be equal to income under IFRS.
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