Peterson Company is preparing its annual financial statements dated December 31, 2020. Ending inventory information about the five major items stocked for regular sale follows:

	Ending Inventory
Item	Quantity on Hand			Unit Cost When Acquired (FIFO)			Net Realizable Value at Year-End
A		51		$	15.10		$	12.10
B		81			30.10			40.10
C		11			45.10			52.10
D		31			25.10			30.10
E		351			10.10			5.10

Required:

1. Compute the value of the 2020 ending inventory by using the LC&NRV rule applied on an item-by-item basis. (Do not round intermediate calculations and round the final answers to 2 decimal places.)

2. What will be the effect of the write-down of inventory to LC&NRV on cost of sales for the year 2020? (Round intermediate calculations and final answer to the nearest whole dollar.)

3-a. Assume that 21 units of item E had not been sold by December 31, 2021 and that the net realizable value of that item increased to $7.60 per unit. Calculate the increase in book value. (Do not round intermediate calculations and round the final answer to 2 decimal places.)