Late in December, the next generation of Multiuse (MU II) watches is release. In addition to all of the features of the MU watch, the MU II watches are equipped with a global positioning system (GPS) and have the ability to download and play songs and videos off the internet. The demand for the original MU watches is greatly reduced. As of December 31, the estimated market value of MU watches is only $110 per watch. Record any necessary adjustment on December 31, 2016, related to this information. At what amount would MU inventory be reported in the December 31, 2016, balance sheet? Prepare an updated gross profit section of a partial income statement accounting for this additional information