1A) Matt Clark, an auditor with Grant CPAs, is performing a review of Parson Company's inventory account. Parson did not have a good year and top management is under pressure to boost reported income. According to its records, the inventory balance at year-end was OMR 600,000. However, the following information was not considered when determining that amount. The physical count did not include goods purchased by Parson with a cost of OMR 30,000 that were shipped FOB destination on December 28 and did not arrive at Parson's warehouse until January 3. Included in the company's count were goods with a cost of OMR 150,000 that the company is holding on consignment. The goods belong to Alvarez Corporation. Included in the inventory account was OMR 21,000 of office supplies that were stored in the warehouse and were to be used by the company's supervisors and managers during the coming year. The company received an order on December 28 that was boxed and was sitting on the loading dock awaiting pick-up on December 31. The shipper picked up the goods on January 1 and delivered them on January 6. The shipping terms were FOB shipping point. The goods had a selling price of OMR 29,000 and a cost of OMR 19,000. The goods were not included in the count because they were sitting on the dock. Included in the count was OMR 27,000 of goods that were parts for a machine that the company no longer made. Given the high-tech nature of Parson's products, it was unlikely that these obsolete parts had any other use. However, management would prefer to keep them on the books at cost, since that is what we paid for them, after all." Instructions (i) Prepare a schedule to determine the correct inventory amount. Provide explanations for each item above, saying why you did or did not make an adjustment for each item. (iii) Determine the correct inventory amount