3 Section 4 Lower of Cost or Market 12 Pts: Compute the lower-of-cost-or-net realizable value valuation for Paley Company's total investory based on the following Inyectory Categories Cost Data Net Realizable Value Data LC o NRV $18,000 $16.900 B 13,900 14,600 21,000 20.500 D 15,000 17,000 E 6,000 5,000 Total Bonus Questions: 1 Pt Each 1.Net sales is sales revenue less 2. sales discounts. b. sales returns c. sales returns and allowances, 2. Pallante Company has sales revenue of $60,000, cost of poods sold of $36,000 and operating expenses of $14,000 for the year ended December 31. Pallante's pros profit is b. $10,000 c. $24,000 d. 546,000 $0. 3. In a period of inflation, the cost flow method that results in the lowest income taxes is the a FIFO method b. LIFO method c. average cost method. d. gross profit method 4.Inventories affect a only the balance sheet. b. only the income statement both the balance sheet and the income statement d. neither the balance sheet nor the income statement