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

question 13

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.

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Definitions:

Classical Theorist

A scholar from the foundational period of a discipline whose theories remain influential to contemporary understanding and practice.

Jean-Jacques Rousseau

An 18th-century Genevan philosopher, writer, and composer known for his influential ideas on education, society, and politics, which emphasize natural human goodness and the corrupting nature of civilization.

John Locke

A 17th-century English philosopher and political theorist known for his contributions to liberal theory and the concept of natural rights.

Organic Analogy

A concept where societies are compared to biological organisms, highlighting how different parts of a society must function together for overall health and survival.