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 financlal 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 financlal statements to incorporate the LCM/NRV rule. You have developed the following data relating to the ending inventory: Required: 1. Restate the Income statement to reflect LCM/NRV valuation of the ending Inventory. Apply LCM/NRV 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. Requlred: 1. Restate the Income statement to reflect LCM/NRV valuation of the ending Inventory. Apply LCM/NRV on an item-by-Item basi 2. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1. Complete this question by entering your answers in the tabs below. Requlred: 1. Restate the Income statement to reflect LCM/NRV valuation of the ending Inventory. Apply LCM/NRV 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. Complete this question by entering your answers in the tabs below. 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.)