Ford Automotives have the following cars listed in inventory on their balance sheet as of the end of the period. Review the "LCM" for each inventory item and assess if it should be recorded at cost or market. Note, Ford operates at a 25% profit margin. Cost Market Value Ceiling Inventory to be reported on the Balance Sheet (LCM) Floor Inventory Value onReplacement Selling Price Cost to Complete NRV Profit NRV-Profitesignated Market Loss to be Margin 1,000 34000 8,750 3,000 L 11,250 1,000 17,000 4,500 1,500 30,5008,o00 1,00039,000 10,000 500 2,500 Cost and Dispose of Margin Value F-150 F-250 Taurus Explorer Mustang Balance Sheet (Cost) 30,000 40,000 15,000 25,000 30,000 12,000 20,000 172,000 25,000 42,000 18.000 30,000 25,000 5,000 12,000 35,000 45,000 18,o0o 32,000 40,000 2,000 10,000 25,250 31,750 12,500 22,500 29,000 300 700 30,000 40,000Not Applicable 15,000 Not Applicable 25,000 Not Applicable 1,000 11,200 20,000 62,200 2,0001 4 17,000 30,000 29,000 800 29,000 800 1,200 1.800 800 8,200 BroncO (Allowance Method) Balance Sheet Income Statement Inventory 172,000 62,200 109,800 Other Gains/Losses: Allowance for Inventor Net Inventory Value Loss Due to Decline in Inventory Value 62,200