General Electric Data for the year ended December 31, 2023:

Item	Amount
Inventory Cost	$8,000,000
Market Value of Inventory	$7,200,000
Sales	$40,000,000
Cost of Goods Sold	$24,000,000
Operating Expenses	$12,000,000

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. Discuss the impact of inventory write-down on General Electric’s operating income.
4. Explain the application of the Conservatism Principle in inventory valuation.
5. How should General Electric record the inventory write-down in its financial statements?