Quèstion 1 Answer the following 2 questions: Question1: Ashraf Company began operations in 2020 and determined its ending inventory at cost and at NRV on December 31 , 2020, and December 31, 2021....

Extracted text: Quèstion 1 Answer the following 2 questions: Question1: Ashraf Company began operations in 2020 and determined its ending inventory at cost and at NRV on December 31 , 2020, and December 31, 2021. This information is presented below. Cost Net Realizable Value 12/31/2020 $120,000 $110,000 12/31/2021 230,000 265,000 What is the effect of applying LCNRV (lower of cost or net realizable value) on income for 20212 a- No effect b- Increases for $10,000 C- Increases for $35,000 d- Increases for $20,000 Question 2: Given the historical cost of the product, Z is $139, the selling price of product Z is $190, costs to sell product Z are $11, and the cost to complete product Z is $20, what is the amount that should be used to value the inventory under IIAS( 2)? v a. $170. b. $150. C. $159. 11:33 AM C420 37°C Haze 8/28/202 e to search DELL Delete PrtScr Insert F12 F10 F11 F9 F7 F8 F6 F5 F3 Backspace & 8 A