John Doe Gymnastics prepared its annual financial statements dated December 31. The company reported its inventory using the LIFO inventory costing method but did not compare the cost of its ending inventory to its market value (Replacement Cost). The Preliminary income statement follows: Assume that you have been asked to restate the financial statements to incorporate the LCM/NRV rule. You have developed the following data relating to the ending inventory: Required: 1. Restate the income Statement to reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis