5 es Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported its inventory using the LIFO inventory costing method but did not compare the cost of its ending inventory to its market value (replacement cost). The preliminary income statement follows: Sales Revenue Cost of Goods Sold Beginning Inventory Purchases Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Operating Expenses Income from Operations Income Tax Expense (30%) Net Income $ 158,000 $ 19,500 100,000 119,500 35,270 84,230 73,770 35,500 38,270 11,481 $ 26,789 Assume that you have been asked to restate the financial statements to incorporate the LCM/NRV rule. You have developed the following data relating to the ending inventory: Purchase Cost Replacement Item ABCO Quantity 1,950 Per Unit $ 3.90 Total $ 7,605 Cost per Unit $ 4.90 800 4.25 3,400 2.90 4,400 2.90 12,760 1.45 D 1,950 5.90 11,505 3.90 $ 35,270