Question # 1 Winter Wonderland Ltd. is a private company that sells winter sports equipment. Its year end is June 30, which is the off-season for its products. Matilda Eisenberg, the company's new controller person who oversees and manage the inventory), has decided to mark all inventory down by 20% for the current year end. Her theory is that sales are slow at this time of year and; therefore, inventory should be less. There is no indication based on prior years that inventory will be sold at less than cost. Matilda says the writedown is necessary and justifies it based on the rule of reporting inventory at lower of cost and net realizable value. She also points out that it will produce the added benefit of paying less income tax. Instructions Is the controller's treatment appropriate? Why or why not