Question 1.1 (18 marks) Martinez has begun operations on Jan. 1, 2020. The company applies the LCNRV method for the valuation of its inventory on an individual-item basis at the end of each year. The inventory of Martinez on Dec. 31, 2020 consists of the following items. Part AA BB Quantity 520 440 1,200 Cost per Unit ($) 12.00 9.00 15.00 Net Realizable Value ($) 21.00 7.00 12.00 Instruction: (a) Compute the amount of inventory to be reported on the balance sheet as of Dec. 31, 2020. (b) Prepare the necessary entry at Dec. 31, 2020, if any. Assume that the loss method is used with an allowance account. (c) Assume that, in the following year, on Dec. 31, 2021, Martinez has inventory with the total cost of $32,000 and the LCNRV of $28,500. Prepare the necessary entry at Dec. 31, 2021, if any