Problem 8 Shrimp Hurricane Helper Company installs three types of hurricane shutters (Standard, Accordian, and Roll top) for single-family homes and condominium complexes along the Louisiana coast. The company is in the process of preparing its annual financial statements for the fiscal year ended March 31, 2020, and the controller for Shrimp has gathered the following data concerning inventory. On March 31, 2020, the balance in Shrimp's Finished Goods Inventory account was $645,000, and the Allowance to Reduce Inventory to NRV had a credit balance of $30,600. The relevant inventory cost and market data as at March 31, 2020, is summarized in the schedule below. The controller assigned an intern from a local university the task of calculating the amount that should appear on Shrimp's March 31, 2020, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Standard Accordian Roll top Total Cost 181,000 254,000 210,000 645,000 Replacement Cost 152,000 249,800 214,000 615,800 Sales Price 158,000 275,000 216,400 649,400 NRV 151,000 262,500 206,000 619,500 Normal Profit 15,000 27,800 19,200 62,000 Required: 1. Determine the proper balance in the Allowance to Reduce Inventory to NRV as at March 31, 2020 2. For the fiscal year ended March 31, 2020 determine the amount of gain or loss that would be recorded due to the change in the Allowance to reduce Inventory to NRV