(a1) Determine the proper balance in Allowance to Reduce Inventory to Market at May 31, 2020. Balance in the Allowance to Reduce Inventory to Market $ 18,240 (a2) For the fiscal year ended May 31, 2020, determine the amount of the gain or loss that would be recorded due to the change in Allowance to Reduce Inventory to Market. The amount of the gain (loss) $ 11,650 Monty Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide, controller for Monty, has gathered the following data concerning inventory. At May 31, 2020, the balance in Monty's Raw Materials Inventory account was $489,600, and Allowance to Reduce Inventory to Market had a credit balance of $29,890. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Monty's May 31, 2020, financial statements for inventory at lower-of-cost-or-market as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Assume Garcia uses LIFO inventory costing. Replacement Cost Net Realizable Value Normal Profit Cost Sales Price Aluminum siding $84,000 $75,000 $76,800 $67,200 $6,120 Cedar shake siding 103,200 95,280 112,800 101,760 8,880 Louvered glass doors 134,400 148,800 223,680 201,960 22,200 Thermal windows 168,000 151,200 185,760 168,000 18,480 Total $489,600 $470,280 $599,040 $538,920 $55,680