Question
The following inventory information was taken from the records of GlobeKom Ltd: Historical cost $12,000 Replacement cost $9,000 Expected selling price $10,000 Expected selling cost
The following inventory information was taken from the records of GlobeKom Ltd:
| Historical cost | $12,000 |
| Replacement cost | $9,000 |
| Expected selling price | $10,000 |
| Expected selling cost | $1,500 |
| Normal profit margin | 10% of selling price |
Under U.S. GAAP, what should be the impairment loss for inventory (assuming LCM method is used)?
| A. | $2,000 | |
| B. | $3,500 | |
| C. | $0 | |
| D. | $1,500 |
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Government Auditing Standards 2011 Revision
Authors: U. S. Government Accountability Office, Comptroller General Of The United States
1st Edition
1482311372, 978-1482311372
