Jaffa Company prepared Its annual financlal 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: Assume that you have been asked to restate the current year financlal statements to incorporate lower of cost or NRV. You have developed the following data relating to the current year ending inventory: 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 basls. 2 Compare the lower of cost or net realizable value effect on each amount that was changed on the income statement in requirement (1). Complete this question by entering your answers in the tabs below. 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