(d) What are the potential disadvantages of the LCNRV method? CA9-2. LCNRV) The net realizable value of Lake Corporation's inventory has declined below its cost. Allyn Conan, the controller, wants to use the loss method to wrnite down inventory because it more clearly discloses the decline in the net realizable value and does not distort the cost of goods sold. His supervisor financial vice president Bill Ortiz, prefers the costof-goods-sold method to write down inventory because it does not call attention to the declime in net realizable value Instructions Answer the following questions (a) What, if any, is the ethical issue involved? (b) Is any stakeholder harmed if Bill Ortiz's preference is used? (c) What should Allyn Conan do