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: $ $286,000 $ 33,600 190,000 223,600 56,484 Sales revenue Cost of goods sold Beginning inventory Purchases Goods available for sale Ending inventory (FIFO Cost) Cost of goods sold Gross profit Operating expenses Pretax income Income tax expense (30%) Net ncome 167, 116 118,884 62,600 56,284 16,885 $ 39, 399 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 Net Realizable Value Cost Item Quantity Unit Total A B C C D 3, 11e 1,560 7,160 3,260 $ 3.60 5.60 2.10 6.60 $ 11, 196 8,736 15, 236 21,516 $ 56,484 Per Unit $ 4.60 4.10 4.10 4.60 quired: repare the income statement to reflect lower of cost or net realizable value valuation of the current year ending Inventory. Apply er 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 Accounts payable Accounts receivable Beginning inventory Cash Cost of goods sold