Inside-The-Lines Painting Company has the following two items in inventory. The company uses LIFO (last-in first-out). Item Total Cost (using LIFO) Brushes $10,000 Canvases $15,000 Normal Profit Replacement margin $4,000 $5,000 Cost $3,000 $10,000 Net Realizab Value 9,000 12,000 Determine the loss recognized under the lower of cost or market method using the item-by-item approach.

Inside-The-Lines Painting Company has the following two items in inventory. The company uses LIFO (last-in first-out). Determine the loss recognized under the lower of cost or market method using the item-by-item approach