In the notes to its financial statements, Gilbert Company discloses a €400,000 reversal of an earlier write-down of inventory values, which increases this inventory's carrying value to €2,000,000. It is most likely that ________.
1) The reasons for this reversal are also disclosed.
2) A gain of 400,000 appears on the income statement
3) The net realizable value of this inventory is €2,000,000