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The Cost of Fulton's Inventory at the End of the Year

question 45

Essay

The cost of Fulton's inventory at the end of the year was $145,000. Due to obsolescence, the cost to replace the inventory was only $90,000. Net realizable value-what the inventory could be sold for-is $102,000.
REQUIRED:
Determine the amount Fulton should report on its year-end balance sheet for inventory assuming the company follows a U.S. GAAP and b IFRS.


Definitions:

Pietro Da Cortona

An Italian Baroque painter and architect, known for his frescoes and ceilings, which combine dramatic movement and rich coloring.

La Pittura

An Italian term meaning "the painting," often associated with discussions on the art and technique of painting.

Artemisia Gentileschi

An Italian Baroque painter known for her powerful depictions of biblical and mythological female figures, and for being one of the first recognized female artists.

Self-Portrait

An artistic representation of the artist by themselves, often a painting, drawing, photograph, or other forms of media.

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