Compare the lower of cost or net realizable value effect on each amount that was changed on the income statement in requirement $(1).($Decreases should be indicated by a minus sign.$)($Round your answers to nearest dollar amount.$)$

$\backslash$table$[[$Item Changed,$\backslash$table$[[$FIFO Cost$],[$Basis$]],\backslash$table$[[$Lower of Cost$],[$or NRV$]],\backslash$table$[[$Amount of$],[$Change$],[($Decrease$)]]],[$Ending irventory,,,$],[$Cost of goods sold,,,$],[$Gross profit,,,$],[$Pretax income,,,$],[$Income tax expense,,,$],[$Net income,,,$]]$Required information

$[$The following information applies to the questions displayed below.$]$

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:

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:

Required:

Prepare the income statement to reflect lower of cost or net realizable value valuation of the current year ending inventory. Apply

lower of cost or NRV on an item$-$by$-$item basis. $($Round your answers to nearest dollar amount.$)$