The following inventory information was.4 ..taken from the records of Kleinfeld Inc Historical cost Replacement cost Expected selling Price Expected selling cost Normal profit margin $12,000 $7,000 $9,000 $500 50% of price Assume that subsequent to your adjustment the expected selling price increases to $13,000 (all the rest of the facts are the same). What adjustment to inventory should ?be made under IAS 2 after this event * (2 ) Inventory should be increased (debited) by $3,500 Inventory should be increased (debited) by $4,000 No adjustment should be made to inventory once it is written down Inventory should be increased .(debited) by $1,000