In 2007 the book value of a company's inventory was $5 million before a $0.3 million write-down was recorded. In 2008, the fair value of the company's inventory was $0.5 million greater than the carrying value. Which of the following statements is/are correct (under the US GAAP)?
I). In 2007 the company's COGS would increase by $0.3 million due to the write-down.
II). In 2008 the company's COGS would decrease by $0.5 million due to the reversal.
III). In 2008 the company would record a $0.3 million recovery as a gain.
IV). In 2007 the company would record a $0.3 million loss due to the write-down.