The Following Inventory Information Was Taken from the Records of Kleinfeld

question 14

Multiple Choice

The following inventory information was taken from the records of Kleinfeld Inc.: $\begin{array}{ll}\text { Historical cost } & \$ 12,000 \\\text { Replacement cost } & \$ 7,000 \\\text { Expected selling price } & \$ 9,000 \\\text { Expected selling cost } & \$ 500 \\\text { Normal profit margin } & 50 \% \text { of price }\end{array}$
-Under IAS 2, what should the balance sheet report for Inventory?

• A)$7,000
• B)$8,500
• C)$7,600
• D)$9,000

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Definitions:

Tort

A civil wrong not arising from a breach of contract. A breach of a legal duty that causes harm or injury to another.

Corporate Law

A branch of law that deals with the formation, governance, and operations of corporations and their relationship with stakeholders.

Shareholders' Meetings

Gatherings of the owners of a corporation's shares to discuss corporate governance and make important decisions.

Stock Certificates

Physical documents certifying ownership of a specific number of shares or stock in a corporation.