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 $416,160, and Allowance to Reduce Inventory to Market had a credit balance of $26,500. 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 at lower-of-cost- or-market as applied to each item in inventory. Devereaux expressed concern over departing from the historical cost principle. Assume Garcia uses LIFO inventory costing. Aluminum siding Cost $71,400 Replacement Cost $63,750 Net Realizable Normal Sales Price Value Profit $65,280 $57,120 $5,202 Cedar shake siding 87,720 80,988 95,880 86,496 7,548 Louvered glass doors Thermal windows 114,240 126,480 190,128 171,666 18,870 142,800 128,520 157,896 142,800 15,708 Total $416,160 $399,738 $509,184 $458,082 $47,328 (a1) Determine the proper balance in Allowance to Reduce Inventory to Market at May 31, 2020. Balance in the Allowance to Reduce Inventory to Market (a2) For the fiscal year ended May 31, 2020, determine the amount of the gain or loss that would be recorded due to the change in Allowance to Reduce Inventory to Market. The amount of the gain (loss) $