The Following Information Pertains to Inventory Held by a Company

question 3

Multiple Choice

The following information pertains to inventory held by a company at December 31, 2011. $$\begin{array} { | l | r | } \hline \text { Historical cost } & \$ 25,000 \\\hline \text { Replacement cost } & \$ 20,000 \\\hline \text { Net realizable value } & \$ 21,000 \\\hline \text { Normal profit Margin } & 20 \% \\\hline\end{array}$$
-What amount of inventory should be reported under IFRS?

• A) $25,000
• B) $21,000
• C) $20,000
• D) $4,000
• E) $5,000 According to IFRS, inventory will be reported at lower of cost or net realizable value.

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Definitions:

Empiricists

Philosophers who believe that knowledge comes primarily from sensory experience.

Human Diversity

The range of differences among humans, including but not limited to race, ethnicity, gender, age, sexual orientation, and disability.

Genes

Units of heredity made up of DNA that act as instructions to make molecules called proteins, influencing individual traits.

Nativists

Scholars who argue that certain skills or abilities are innate and hard-wired into the brain at birth.