The following inventory information was taken from the records of Kleinfeld Inc.: Assume that subsequent to your adjustment the expected selling price increases to $13,000 (all the rest of the facts are the same). What adjustment to inventory should be made under IAS 2 after this event?
A) Inventory should be increased (debited) by $3,500.
B) Inventory should be increased (debited) by $4,000.
C) No adjustment should be made to inventory once it is written down.
D) Inventory should be increased (debited) by $1,000.

Question

The following inventory information was taken from the records of Kleinfeld Inc.:  Assume that subsequent to your adjustment the expected selling price increases to $13,000 (all the rest of the facts are the same). What adjustment to inventory should be made under IAS 2 after this event?
A) Inventory should be increased (debited) by $3,500. 
B) Inventory should be increased (debited) by $4,000. 
C) No adjustment should be made to inventory once it is written down. 
D) Inventory should be increased (debited) by $1,000.

Quizplus · Accepted Answer

The Answer of The following inventory information was taken from the records of Kleinfeld Inc.:  Assume that subsequent to your adjustment the expected selling price increases to $13,000 (all the rest of the facts are the same). What adjustment to inventory should be made under IAS 2 after this event?
A) Inventory should be increased (debited) by $3,500. 
B) Inventory should be increased (debited) by $4,000. 
C) No adjustment should be made to inventory once it is written down. 
D) Inventory should be increased (debited) by $1,000.

The Following Inventory Information Was Taken from the Records of Kleinfeld