Data for the year ended December 31, 2023:

Item	Amount
Inventory Cost	$2,000,000
Market Value of Inventory	$1,800,000
Sales	$10,000,000
Cost of Goods Sold	$6,000,000
Operating Expenses	$2,500,000

1. Calculate the amount of inventory to be reported on the balance sheet.
2. Determine the impact on net income due to the write-down of inventory.
3. Explain how the Conservatism Principle guides this write-down.
4. Calculate the revised gross margin after the write-down.