Sage Home Improvement Company installs replacement siding, windows, and louvered glass doors for single-family homes and condominium complexes. The company is in the process of preparing its annual financial statements for the fiscal year ended May 31, 2020. Jim Alcide, controller for Sage, has gathered the following data concerning inventory. At May 31, 2020, the balance in Sage's Raw Materials Inventory account was $428,400, and Allowance to Reduce Inventory to NRV had a credit balance of $27,450. Alcide summarized the relevant inventory cost and market data at May 31, 2020, in the schedule below. Alcide assigned Patricia Devereaux, an intern from a local college, the task of calculating the amount that should appear on Sage's May 31, 2020, financial statements for inventory under the LCNRV rule as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Cost Sales Price Net Realizable Value $58,800 $73,500 $67,200 90,300 98,700 89,040 Aluminum siding Cedar shake siding Louvered glass doors Thermal windows Total 117,600 195,720 176,715 147,000 162,540 147,000 $428,400 $524,160 $471,555 (a) ) Determine the proper balance in Allowance to Reduce Inventory to NRV at May 31, 2020. Balance in the Allowance to Reduce Inventory to NRV $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer (b) For the fiscal year ended May 31, 2020, determine the amount of the gain or loss that would be recorded (using the loss method) due to the change in Allowance to Reduce Inventory to NRV. (Enter loss using either a negative sign preceding the number eg. -45 or parentheses eg: (45).) The amount of the gain (loss) e Textbook and Media Save for Later Attempts: 0 of 3 used Submit