It is December 31, end of the year, and the controller of Cornell Corporation is applying the lower-of-cost-or-market (LCM) rule to inventories. Before any year-end adjustments, Cornell reports the following data:
Cost of goods sold........................................... $420,000
Historical cost of ending inventory,
as determined by a physical count ............... 65,000

Cornell determines that the replacement cost of ending inventory is $49,000. Show what Cornell should report for ending inventory and for cost of goods sold. Identify the financial statement where each item appears.