Please explain your calculations. Thank you!

[The following information applies to the questions displayed below.] Jaffa Company prepared its annual financial statements dated December 31 of the current year. The company applies the FIFO inventory costing method; however, the company neglected to apply LCM to the ending inventory. The preliminary current year income statement follows: Assume that you have been asked to restate the current year financial statements to incorporate LCM. You have developed the following data relating to the current year ending inventory: 1. Prepare the income statement to reflect LCM valuation of the current year ending inventory. Apply LCM on an item-by-item basis (Round your answers to nearest dollar amount.) 2. Compare the LCM effect on each amount that was changed on the income statement in requirement (1). (Decreases should be indicated by a minus sign.)(Round your answers to nearest dollar amount.)