The following inventory information was taken from the records of a foreign corporation whose stock is listed on an exchange in the U.S. The following inventory information was taken from the records of a foreign corporation whose stock is listed on an exchange in the U.S. How will income under the U.S. GAAP compare to income the company reported under IFRS after reconciliation?
A) Income will not be affected by the reconciliation.
B) Income under U.S. GAAP will be lower by $1,700.
C) Income under U.S. GAAP will be lower by $2,500.
D) Income under U.S. GAAP will be equal to income under IFRS.

Question

The following inventory information was taken from the records of a foreign corporation whose stock is listed on an exchange in the U.S.  The following inventory information was taken from the records of a foreign corporation whose stock is listed on an exchange in the U.S. How will income under the U.S. GAAP compare to income the company reported under IFRS after reconciliation?
A) Income will not be affected by the reconciliation. 
B) Income under U.S. GAAP will be lower by $1,700. 
C) Income under U.S. GAAP will be lower by $2,500. 
D) Income under U.S. GAAP will be equal to income under IFRS.

Quizplus · Accepted Answer

The Answer is A

The Following Inventory Information Was Taken from the Records of a Foreign