A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers 336 $ 91 $ 99 Stereos 251 112 101 Amplifiers 317 87 96 Subwoofers 195 53 42 Security equipment Alarms 471 151 126 Locks 282 94 85 Cameras 203 311 323 Binocular equipment Tripods 176 71 85 Stabilizers 161 98 106 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.