PepsiCo Data for the year ended December 31, 2023:

Item	Amount
Inventory Cost	$3,000,000
Market Value of Inventory	$2,600,000
Sales	$12,000,000
Cost of Goods Sold	$7,500,000
Operating Expenses	$3,000,000

1. Calculate the amount of inventory to be reported on the balance sheet.
2. Determine the impact on net income due to the write-down of inventory.
3. Discuss the impact of inventory write-down on PepsiCo’s operating income.
4. Explain the application of the Conservatism Principle in inventory valuation.
5. How should the company record the inventory write-down?