A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Units Cost Market 338 253 319 197 $ 93 114 89 55 $101 103 98 44 Item Car audio equipment Speakers Stereos Amplifiers Subwoofers Security equipment Alarms Locks Cameras Binocular equipment Tripods Stabilizers 473 284 205 153 96 313 128 87 325 178 163 73 100 87 108 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