Forgone Company had beginning inventory of $19,000, purchases were $100,000, and ending inventory had a cost of $25,000 and a market value of $20,000.The same inventory increased $3,000 in market value in the subsequent period.Which of the following is/are not true?
A)Under U.S.GAAP, the firm would continue to record the inventory at $20,000, the lower of cost or market.
B)Under IFRS, the firm would reverse a portion of its previous impairment.
C)If Forgone Company is in an industry that frequently experience inventory price fluctuations, the firm may use an allowance account to record lower-of-cost-or-market adjustments.
D)The firm should disclose the existence of large inventory write-ups in Managements' Discussion and Analysis so that users of financial statements understand the reversal of the previous asset impairment.
E)none of the above

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The Answer of Forgone Company had beginning inventory of $19,000, purchases were $100,000, and ending inventory had a cost of $25,000 and a market value of $20,000.The same inventory increased $3,000 in market value in the subsequent period.Which of the following is/are not true?
A)Under U.S.GAAP, the firm would continue to record the inventory at $20,000, the lower of cost or market.
B)Under IFRS, the firm would reverse a portion of its previous impairment.
C)If Forgone Company is in an industry that frequently experience inventory price fluctuations, the firm may use an allowance account to record lower-of-cost-or-market adjustments.
D)The firm should disclose the existence of large inventory write-ups in Managements' Discussion and Analysis so that users of financial statements understand the reversal of the previous asset impairment.
E)none of the above

Forgone Company Had Beginning Inventory of $19,000, Purchases Were $100,000