A physical inventory of Liverpool Company taken at December 31 reveals the following.

		Per Unit
Item	Units	Cost	Market
Audio equipment
Receivers	344	$	99	$	107
CD players	259		120		109
MP3 players	325		95		104
Speakers	203		61		50
Video equipment
Handheld LCDs	479		159		134
VCRs	290		102		93
Camcorders	211		319		331
Car audio equipment
Satellite radios	184		79		93
CD/MP3 radios	169		106		114

Required:
1.	Calculate the lower of cost or market for the inventory applied separately to each item.

2.	If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account.

Navajo Companys financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Inventory on December 31, 2014, is understated by $61,000, and inventory on December 31, 2015, is overstated by $31,000.

For Year Ended December 31	2014	2015	2016
(a)	Cost of goods sold	$	736,000	$	966,000	$	801,000
(b)	Net income		279,000		286,000		261,000
(c)	Total current assets		1,258,000		1,371,000		1,241,000
(d)	Total equity		1,398,000		1,591,000		1,256,000

Required:
1.	For each key financial statement figure(a), (b), (c), and (d) belowprepare a table to show the adjustments necessary to correct the reported amounts.(Amounts to be deducted must be entered with a minus sign.)