At the end of the annual accounting period, the accounting records provided the following information (assume the periodic inventory system):

	Units	Unit Cost
Beginning Inventory	5,000	$10
Purchases April 23	3,000	$11
Purchases August 17	2,000	$12
Purchases December 26	1,000	$13
Ending Inventory	7,000

A.Compute the balance of ending inventory using both the FIFO and LIFO methods

B.At the end of the year, management has determined that the current net realizable value (market value) per unit is only $5. Record the journal entry for the current year (This is at the end of the Inventory lecture- there will be plenty of partial credit so use the notes to answer this).

C.Briefly describe the income statements effects for both the current and next period of the journal entry recorded in part B (The key here is to compare the effects of an impairment loss versus keeping the inventory at its book value).