A company like Golf USA that sells golf-related inventory typically will have inventory items such as golf clothing and golf equipment. As technology advances the design and performance of the next generation of drivers, the older models become less marketable and therefore decline in value. Suppose that in the current year, Ping (a manufacturer of golf clubs) introduces the MegaDriver II, the new and improved version of the MegaDriver. Below are amounts related to Golf USAs inventory at the end of the year.

Inventory	Quantity	Cost	NRV
Shirts	42	$ 67	$ 77
MegaDriver	22	430	285
MegaDriver II	37	385	490

Record any necessary adjustment to inventory.