At 12/31/20, the end of Cullumber Company's first year of business, inventory was $6,200 and $5,500 at cost and at market, respectively. Following is data relative to the 12/31/21 inventory of Jenner:

Item		Original Cost Per Unit			Replacement Cost
A		$0.70			$0.35
B		0.45			0.40
C		0.80			0.85
D		0.75			0.65
E		0.85			0.80

Selling price is $1.00/unit for all items. Disposal costs amount to 10% of selling price and a "normal" profit is 20% of selling price. There are 1,500 units of each item in the 12/31/21 inventory.

B) Complete the last three columns in the 12/31/21 schedule below based upon the lower-of-cost-or-market rules.

Item		Original Cost Per Unit			Replacement Cost			Net Realizable Value		Net Realizable Value Less Normal Profit		Appropriate Inventory Value
A		$0.70			$0.35			$		$		$
B		0.45			0.40
C		0.80			0.85
D		0.75			0.65
E		0.85			0.80
		$

C) Prepare the entries necessary 12/31/21 based on the data above.

D) How are inventory losses disclosed on the income statement?