PA7-2 (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 Assume that you have been asked to restate the financial statements to incorporate the LCMINRV rule. You have developed the following data relating to the ending inventory: Required: 1. Restate the income statement to reflect LCMINRV valuation of the ending inventory. Apply LCMINRV on an item-by-item basis 2. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1. Restate the income statement to refiect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1. (Decreases should be indicated by a minus sign.)