At 12/31/10, the end of Jenner Company's first year of business, inventory was $4,100 and $2,800 at cost and at market, respectively. Following is data relative to the 12/31/11 inventory of Jenner:

Selling price is $1.00/unit for all items. Disposal costs amount to 10% of selling price and a "normal" profit is 30% of selling price. There are 1,000 units of each item in the 12/31/11 inventory.
Instructions:
(a) Prepare the entry at 12/31/10 necessary to implement the lower-of-cost-or-market procedure assuming Jenner uses a contra account for its balance sheet.
(b) Complete the last three columns in the 12/31/11 schedule above based upon the lower-of-cost-or-market rules.
(c) Prepare the entry(ies) necessary at 12/31/11 based on the data above.

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Net Net Realizable Appropriate Value Less Invernt Normal Proft Original Cost Replacement Realizable Value Value Cost 5.45 40 75 65 85 Item Per Unit 5.65 45 .70 75 90