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:

1 a,b, and c

Required: (a) 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.)

(b) 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.)

(c) Assume that 36 units of item E had not been sold by December 31, 2021 and that the net realizable value of that item increased to $9.10 per unit. Calculate the increase in book value. (Do not round intermediate calculations and round the final answer to 2 decimal places.)

\begin{tabular}{cccc} & \multicolumn{2}{c}{ Ending Inventory } & Net Realizable Value \\ Item & Quantity on Hand & Unit Cost When Acquired (FIFO) & at Year-End \\ A & 66 & $16.60 & $13.60 \\ B & 96 & 31.60 & 41.60 \\ C & 26 & 46.60 & 53.60 \\ D & 46 & 26.60 & 31.60 \\ E & 366 & 11.60 & 6.60 \end{tabular}