Check my work Jaffa Company prepared its annual financial statements dated December 31 of the current year. The company applies the FIFO inventory costing method; however, the company neglected to apply lower of cost or net realizable value to the ending inventory. The preliminary current year income statement follows: $281,000 $ 33, 100 185.000 218,100 48,144 sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory (FIFO cost) Cost of goods sold Gross profit Operating expenses Pretax income Income tax expense (358) Net income 169,956 111,044 62,100 48,944 17, 130 $ 31,814 Assume that you have been asked to restate the current year financial statements to incorporate lower of cost or NRV You have developed the following data relating to the current year ending inventory ances Item Unit Quantity 3,060 1.50 7110 3,210 $ 3.10 5.10 1.60 Acquisition Cost Total $ 9,486 7.701 11.376 19,581 $ 48,144 Net Realizable Value Per Unit $ 4.10 3.60 3.60 4.10 2. Compare the lower of cost or net realizable value effect on each amount that was changed on the income statement in requirement (0) (Decreases should be indicated by a minus sign.)(Round your answers to nearest dollar amount.) Prev 6 of 7 Next > Required information Acquisition Cost Item Quantity 3,060 1,510 7,110 3,210 Unit $ 3.10 5.10 1.60 6.10 Total $ 9,486 7,701 11,376 19,581 $ 48,144 2. Compare the lower of cost or net realizable value effect on each a (1). (Decreases should be indicated by a minus sign.)(Round your an Item Changed FIFO Cost Basis Lower of Cost o r NRV Amount of Change (Decrease) Ending inventory Cost of goods sold Gross profit Pretax income Income tax expense Net income