PA$7-2($Algo$)$ Evaluating the Income Statement and Income Tax Effects of Lower of Cost orMarket$/$Net Realizable Value $($LO $7-4]$Springer Anderson 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: