Cost ** Question 1 The December 31, 2020, inventory of Bailey Inc. consisted of four products, for which certain information is provided below: Replacement Estimated Expected Product Original Cost Disposal Cost Selling Price A $29.00 $22.00 $6.50 $40.00 B $44.00 $40.00 $8.00 $48.00 C $145.00 $125.00 $25.00 $190.00 D $21.00 $15.80 $3.00 $28.00 ** Replacement cost: Cost of Bailey to replace/replenish' the unit of inventory. Required: a. Using the lower of cost and NRV approach applied on an individual-item basis, calculate the inventory valuation that should be reported for each product on December 31, 2020. b. U.S. GAAP allows the use of replacement cost in determining the LCM (Lower of cost and market.) Explain why the cost to replace/buy a unit of raw materials might not be an appropriate amount to use in the LCM calculation, considering the whole purpose of the LCM model in accounting. C. Define NRV