LOWER OF COST OR MARKET. Roanoke Beverage Distributors’ income statement for a recent year appears below. The ending inventory amount was determined from historical cost data.

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Sales revenue Cost of goods sold Beginning inventory Purchases Cost of goods available for sale Ending inventory Cost of goods sold Gross margin Operating expenses Income before taxes $ 48,000 562,000 $920,000 610,000 92,000 518,000 402,000 328,000 $ 74,000 Assume that you discover that the historical cost of the ending inventory overstates its market value by $18,600. REQUIRED: Restate the income statement to reflect the market value of the inventory.