Apple Inc. Data for the year ended December 31, 2023:

Item	Amount
Inventory Cost	$10,000,000
Market Value of Inventory	$9,000,000
Sales	$50,000,000
Cost of Goods Sold	$30,000,000
Operating Expenses	$15,000,000

1. Calculate the amount of inventory to be reported on the balance sheet.
2. Determine the impact on net income due to the write-down of inventory.
3. Discuss how the inventory write-down affects Apple's gross margin.
4. Explain how the Conservatism Principle guides this write-down.
5. How should the company record the inventory write-down in its journal entries?