Question 4 Rexburg Inc. reports the following information as of December 31 of the current year: $5,000 Balance in Allowance for Market Decline: (unadjusted since December 31 of prior year) Inventory Item NRV Cost Replacement Cost NRV less Normal Profit 66,000 24,000 90,000 Item A.1 Item A.2 Major Group A 63,000 25,000 88,000 64,000 23,000 87,000 71,000 26,000 97.000 Item B.1 41,000 44,000 54,000 50,000 Item B.2 40,000 38,000 41,000 37,000 Major Group B 82,000 72,000 95,000 87,000 All Inventory Items 170,000 159,000 192,000 177,000 a) What is the value of ending inventory? What journal entry should Rexburg make to reflect the lower-of-cost adjustment for the current year, assuming that LCM is applied on an individual item basis? b) What is the value of ending inventory? What journal entry should Rexburg make to reflect the lower-of-cost adjustment for the current year, assuming that LCM is applied on a major group basis