Problem 5-5A Lower of cost or market LO P2 A physical inventory of Liverpool Company taken at December 31 reveals the following Per Unit Units Cost Market Item Car audio equipment Speakers Stereos 341 96 $104 256 117 322 200 106 101 47 Amplifiers Subwoofers 58 Security equipment Alarms Locks Cameras 476 287 208 156 316 76 131 90 328 Binocular equipment Tripods Stabilizers 181 166 90 103 Required 1. Calculate the lower of cost or market for the inventory applied separately to each item 2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account