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Question - Sun Company had inventory that cost $2,000 on 12/31/2019 of the first year. The expected selling price of the inventory was $1,760, and the estimated selling cost was $100. The replacement cost increased to $1,800 at the end of the first quarter of the second year, the expected selling price increased to $1980, and the estimated cost of completion and sale reached $120.
Required -
1. Calculate the net realizable value of inventory during the first and second years according to IFRS and US-GAPP.
2. Creating a journal entry to reflect the change in inventory value during the first and second years according to IFRS and US-GAPP.
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