$2.$ Late in December, the next generation of multiuse $($MU II$)$ watches is released. In addition to all of the features of the MU watch, the MU II watches are equipped with a global positioning system $($GPS$)$ and have the ability to download and play songs and videos off the Internet. The demand for the original MU watches is greatly reduced. As of December $31,$ the estimated net realizable value of MU watches is only $$109$ per watch.

a$.$ Record any necessary adjusting entry on December

$31,2025,$ related to this information, assuming Suzie uses a FIFO perpetual inventory system to account for inventory.

b$.$ For what amount would MU inventory be reported in the December $31,2025,$ balance sheet?

c$.$ Prepare an updated gross profit section of a partial income statement accounting for this additional information.