PA$7-2($Algo$)$ Evaluating the Income Statement and Income Tax Effects of Lower of Cost or Market$/$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:

$\backslash$table$[[\backslash$table$[[$Sales Revenue$],[$Cost of Goods Sold$]],,$$$160,020$