Jaffa Company prepared its annual financial statements dated December 31 of the current year. The company applies the FIFO Inventory costing method; however, the company neglected to apply lower of cost or net realizable value to the ending inventory. The preliminary current year income statement follows: $ 298,000 $ 34,000 202,000 236,800 70,256 Sales revenue Coat of goods sold Beginning inventory Purchases Goods available for sale Ending Inventory (FIPO cost) Cost of goods sold Gross profit Operating expenses Pretax income Income tax expense (300) Net income 166.544 131,456 63,800 67,656 20.297 $ 67,359 Assume that you have been asked to restate the current year financial statements to incorporate lower of cost or NRV You have developed the following data relating to the current year ending inventory Acquisition Coat Quantity Unit Set Realizable Total Value Per Unat 3,230 $4.80 $ 15,504 $ 3.80 1,680 4.30 7,224 5.80 7.280 31,304 2.30 3,380 $ 70,256 Item c D 6.00 Required: 1. Prepare the income statement to reflect lower of cost or net realizable value valuation of the current year ending inventory. Apply lower of cost or NRV on an item-by-item basis. (Round your answers to nearest dollar amount) JAFFA COMPANY Income Statement (Corrected) For the Year Ended December 31, Current Year Cost of goods sold: Goods available for sale Cost of goods sold Pretax income