The information below belongs to Company ABC for 2015.

Product Line	Quantity on Hand	Cost per unit	Profit Margin*	Selling Price	Replacement Cost	Cost to Dispose
S	100	1,000	104	1,040	1,010	20
D	200	500	47.5	475	425	25
B	300	1,500	170	1,700	1,400	100
C	400	750	80	800	790	30
L	500	250	27.5	275	210	75

*Based in Selling Price (10%)

1. Compute the valuation of Inventory under IAS 2 for ABC Company at December 31, 2015

2. Should ABC Co. recorded any gain or loss, related to Inventory Valuation for the period ended December 31, 2015?

3. Assume that in 2016 the company determines total market value of the Inventory is $2,000,000. The company always applies IAS 2, Inventory Valuation. All Product Line, quantity and costs remain the same. The company should adjust the Inventory account for $_______.

Explain