Devin Corp operates both a retail and wholesale division selling a line of submersible pumps. Both operations have significant inventory. For the retail division, Devin uses the retail LIFO inventory method and makes sure to apply it in a way that approximates lower of cost or market. In 2021, Devin has the following results in the retail division:

Purchases at invoice cost $680,000 and at suggested retail value $1,296,000

Purchase returns were $11,000 at cost and at suggested retail value $20,900

Freight in on purchases $16,400.

Beginning inventory at retail is $107,500 and the inventory reported on the 2020 balance sheet was 54,600.

Mark ups were $4,000 and mark downs were $46,000.

Net sales for the year were $1,284,000.

At the end of 2021 in the retail division, Devin runs a report that shows all products that have not sold at all in 2021. This report shows the following three products that have been discontinued by the manufacturer:

Item L78 that cost $226 and 2 are on hand. Retail price $299

Item R56 that cost $65 and 6 are on hand. Retail price $99

Item B86 that cost $148 and 4 are on hand. Retail price $265

While investigating these items, we find out that for all of them, the sales crew has marked them down 25% but that has not resulted in sales. The lack of parts and support for discontinued models concerns most customers. In early January, 2022 - Devin marks down the models listed above at 50% off retail price. They put the items in a more prominent position in the store and promote them in the online catalog. Sales start to trickle in.

Required for 2021:

Calculate the loss from the application of LCM for Devin if they apply LCM to individual products as of December 31, 2021.

Show the journal entry to record the loss calculated in 1 if necessary.

Show the journal entry to sell all of items L78, R56 and B86 for cash in January and February, 2022.