2. Keiras Kites has the following information pertaining to her Kite Inventory:

KITE Cost ReplaceCost NRV NRV- Profit

A $20,000 $20,500 $21,000 $16,000

B $50,000 $51,000 $49,500 $41,000

C $44,000 $45,500 $46,250 $37,000

D $32,000 $29,900 $38,300 $30,700

Required:

1. Calculate the Lower of Cost or Market Value for each item of inventory and RECORD any adjusting Journal Entry required.
2. Calculate the Lower of Cost or Market for the Total Inventory and record any adjusting entry required.

**NRV=Net Realizable Value****

***NRV-Profit = Net Realizable Value Normal Profit Margin***