Peterson Company is preparing the annual financial statements dated December 31, 2017. Ending inventory information about the five major items stocked for regular sale follows: Ending Inventory Item Quantity on Hand 70 100 Unit Cost When Net Realizable Value Acquired (FIFO) at Year-End $17.00 $14.00 32.00 42.00 47.00 54.00 27.00 32.00 12.00 7.00 C30 D 50 E 370 mo Required: 1. Compute the value of the 2017 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.) Item Quantity Total Cost Total Market LC&NRV Valuation 70 x 30 x Total 2. What will be the effect of the write-down of inventory to LC&NRV on cost of sales for the year 2017? (Round intermediate calculations and final answer to the nearest whole dollar.) Cost of sales will be by L 3-a. Assume that 40 units of item E had not been sold by December 31, 2018, and that the net realizable value of that item increased to $9.50 per unit. Calculate the increase in book value. (Do not round intermediate calculations and round the final answer to 2 decimal places.) Increase in book value