Parson Company was formed on January 1 of the current year and is preparing the annual financial statements dated December 31, current year. Ending inventory information about the four major items stocked for regular sale follows: ENDING INVENTORY, CURRENT YEAR Net Realizable Value (Market) Quantity Unit Cost When at Year-End $ 12 Acquired (FIFO) $17 46 57 Item on Hand 32. 67 42 nt 59 47 29 22 34 Required: 1. Compute the valuation that should be used for the current year ending inventory using the LCM rule applied on an item-by-item basis. Total Market LCM Item Quantity Total Cost Valuation A 32 67 C 47 22 0 $ S C Total 2. What will be the effect of the write-down of inventory to lower of cost or market on cost of goods sold for the year ended December 31, current year? The write-down to lower of cost or market will cost of goods sold by the amount of the write-down