Mondetta Clothing prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it failed to apply LCM to the ending inventory. The preliminary income statement follows Net Sales Cost of Goods Sold $410,000 Beginning Inventory Purchases S 42,500 268,000 Goods Available for Sale Ending Inventory (FIFO cost) 310,500 50,000 Cost of Goods Sold 260,500 Gross Profit Operating Expenses 149,500 90,500 Income from Operations Income Tax Expense (40%) 59,000 23,600 Net Income $ 35,400 Assume that you have been asked to restate the financial statements to incorporate LCM. You have developed the following data relating to the ending inventory: Market Value per Acquisition Cost Item QuantityPer Unit Total Unit 2,500 1,250 6,500 2,500 $4.00 5.00 2.50 7.00 $ 10,000 $5.50 2.50 5.50 4.00 6,250 16,250 17,500 $50,000