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

		Per Unit
Item	Units	Cost			Market
Car audio equipment
Speakers	350	$	105		$	113
Stereos	265		126			116
Amplifiers	331		101			110
Subwoofers	209		67			57
Security equipment
Alarms	485		165			155
Locks	296		108			98
Cameras	217		327			337
Binocular equipment
Tripods	190		89			99
Stabilizers	175		110			120

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.