Required: Answer each of the following questions.a. In measuring inventories at the lower of cost or net realizable value does net realizable value mean?i. Estimated replacement cost orii. Estimated selling price less estimated costs to complete and sell the inventory?b. Under International Financial Reporting Standards which of the following methods is (or are) acceptable to account for an investment in a joint venture?i. Cost methodii. Equity method iii. Proportionate consolidationiv. Consolidationc. Which of the following would be classified as an extraordinary item?i. Loss from settlement of a product liability lawsuitii. Claims paid by an airline as a result of a plane crashiii. Destruction of a communications satellite during launchiv. None of the aboved. In Year 1 an enterprise accrued its warranty obligation based on its best estimate of the expected cost to repair defective products during the three-year warranty coverage period. During Year 2 warranty claims were significantly more than expected due to unrecognized quality-control problems in Year 1. Is it appropriate to restate the financial statements for Year 1 to reflect the revised estimate of the warranty obligation?e. True or false: An enterprise with a December 31 year-end declares a dividend on its common shares on January 5. The dividend is recognized as a liability at year-end.f. After initial recognition which of the following financial assets is (are) not remeasured at fair value?i. Options on unquoted equity securitiesii. Marketable securities (equities)iii. Derivative financial instruments that are financial assetsiv. Fixed maturity instruments the enterprise intends to hold to maturityg. Which of the following is true? An enterprise that follows the policy of revaluing its property plant and equipment may apply that policy:i. To all assets within a single country on a country-by-country basisii. To all assets within a single broad class such as to land and buildingsiii. To all assets of a certain age such as all assets 10 years old or older.h. True or false: Interest costs on funds borrowed by an enterprise to finance the construction of a new building must be capitalized as part of the cost of the building.

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