Evaluatinf the income statement and income tax effects of lower of cost of marketet realizable value

PA7-2 (Algo) Evaluating the Income Statement and Income Tax Effects of Lower of Cost or Market/Net Realizable Value [LO 7.4] Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company raported its inventory using the UFO inventory costing method but did not compare the cost of its ending inventory to its market value (replacement cost). The prellminary income statement follows: Assume that your have been asked to restate the financlal statements to incorporate the LCMNRV nie, You have developed the foliowing data relating to the ending imventory: 1. Restate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. 2. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1. Complete this question by entering your answers in the tabs below. Restate the income statement to refiect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. equired: Restate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. . Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1. Complete this question by entering your answers in the tabs below. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1. (Decreases should be indicated by a minus sign.)