ABCCorp. carries its inventory at the lower of cost and net realizable value. At December 31, 2015, the cost of inventory, determined under the first - in, first - out (FIFO) method, as reported in its financial statements for the year then ended, was exist10 million. Due to severe recession and other negative economic trends in the market, the inventory could not be sold during the entire month of January 2016. On February 10, 2016, ABCCorp. entered into an agreement to sell the entire inventory to a competitor for exist6 million. Presuming the financial statements were authorized for issuance on February 15, 2016, should ABCCorp. recognize a write - down of exist4 million in the financial statements for the year ended December 31, 2015