Metlock Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide, controller for Metlock, has gathered the following data concerning inventory. At May 31, 2020, the balance in Metlock's Raw Materials Inventory account was $461,040, and Allowance to Reduce Inventory to Market had a credit balance of $29,040. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Metlock's May 31, 2020, financial statements for inventory lower-of-cost-or-market as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Assume Garcia uses LIFO inventory costing. Aluminum siding Cedar shake siding Louvered glass doors Thermal windows Total Cost $79,100 97,180 126,560 158,200 $461,040 Replacement Cost $70,625 89,722 140,120 142,380 $442,847 Sales Price $72,320 106,220 210,632 174,924 $564,096 Net Realizable Value $63,280 95,824 190,179 158,200 $507,483 Normal Profit $5,763 8,362 20,905 17,402 $52,432 (a1) Determine the proper balance in Allowance to Reduce Inventory to Market at May 31, 2020. Balance in the Allowance to Reduce Inventory to Market $ 39089 (a2) For the fiscal year ended May 31, 2020, determine the amount of the gain or loss that would be recorded due to the change in Allowance to Reduce Inventory to Market. The amount of the gain (loss) $ 10049