0.57 points PA7-2 Evaluating the Income Statement and Income Tax Effects of Lower of Cost or Market [LO 7-4] Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it failed to apply LCM to the ending inventory. The preliminary income statement follows $126,000 Sales Revenue Cost of Goods Sold $11,500 84,000 Beginning Inventory Goods Available for Sale Ending Inventory (FIFO cost) 95,500 21,400 Cost of Goods Sold 74.100 Gross Profit Operating Expenses 51,900 27,500 24,400 9,760 Income from Operations Income Tax Expense (40%) Net Income $ 14,640 Assume that you have been asked to restate the financial statements to incorporate LCM. You have developed the data relating to the ending inventory Market Value per Unit Item Quantity Per Unit 750 2,800 2,350 2.350 $2.30 5,405 $3.30 1.40 0.70 2.30 3.00 1.30 4.30 2,250 3,640 10,105 D $21,400