A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers 343 $ 98 $ 106 Stereos 258 119 108 Amplifiers 324 94 103 Subwoofers 202 60 49 Security equipment Alarms 478 158 133 Locks 289 101 92 Cameras 210 318 330 Binocular equipment Tripods 183 78 Stabilizers 168 105 92 113 Required: 1. Compute 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.