Use the following to answer questions :
The following inventory information was taken from the records of Kleinfeld Inc.:
-Under IAS 2,what should the Balance Sheet report for Inventory?
A)$7,000
B)$8,500
C)$7,600
D)$9,000

Question

Use the following to answer questions :
The following inventory information was taken from the records of Kleinfeld Inc.: 
-Under IAS 2,what should the Balance Sheet report for Inventory?
A)$7,000 
B)$8,500 
C)$7,600 
D)$9,000

Quizplus · Accepted Answer

The inventory value should be reported at the lower of cost and net realizable value. According to the information given, the inventory cost is $8,500, which is lower than the net realizable value of $9,000. Therefore, the Balance Sheet should report the inventory at $8,500.

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