1: how to solve this question?

Novak Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide, controller for Novak, has gathered the following data concerning inventory. At May 31, 2020, the balance in Novak's Raw Materials Inventory account was $424,320, and Allowance to Reduce Inventory to Market had a credit balance of $25,440. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Novak's May 31, 2020, financial statements for inventory at lower-of-cost-or-market as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Assume Garcia uses LIFO inventory costing. Net Replacement Realizable Normal Cost Cost Sales Price Value Profit Aluminum siding $72,800 $65,000 $66,560 $58,240 $5,304 Cedar shake siding 89,440 82,576 97,760 88,192 7,696 Louvered glass doors 116,480 128,960 193,856 175,032 19,240 Thermal windows 145,600 131,040 160,992 145,600 16,016 Total $424,320 $407,576 $519,168 $467,064 $48,256 (a1) Determine the proper balance in Allowance to Reduce Inventory to Market at May 31, 2020. Balance in the Allowance to Reduce Inventory to Market $[32} For the scal year ended May 31, 2020. determine the amount of the gain or loss that would be recorded due to the change in Allowance to Reduce Inventory to Market. The amount of the gain \"055] $ l