Question 18 options:

At the end of the year, Merton Company's accounting records showed that they had 125 items in stock at a FIFO cost of $5 each. These normally sell for $10 each. Due to increased competition, these items can now be sold for only $4 each.

What is the amount of an adjustment, if any, that must be made to the value of the inventory at year-end? Enter digits only, with no commas, decimal points, or dollar signs. Type 0 if no adjustment is needed.