E9-14 Alcoa Enterprises, which uses a perpetual inventory system, has these account bal- ances at December 31, 20X1. prior to releasing the financial statements for the year: INVENTORY Beg. bal. 12,489 3 End bal. 18,028 COST OF GOODS SOLD Bal. 113.245 SALES REVENUE Bal. 225.000 ast-or- 25 A year ago, when Alcoa prepared its 20X0 financial statements, the replacement cost of ending inventory was $13.051. Alcoa has determined that the replacement cost (current market value) of the December 31, 20X1, ending inventory is $16,840. Required Prepare Alcoa Enterprises 20X1 income statement through gross profit to show how Alcoa would apply the lower-of-cost-or-market rule to its inventories. Include a complete heading for the statement.