Sandals Company is preparing the annual financial statements dated December 31. Ending inventory information about the four major items stocked for regular sale follows: Product Line Quantity on Hand Unit Cost When Acquire(FIFO) Market Value at Year-End Air Flow 40 $ 17 $ 19 Blister Buster 100 30 28 Coolonite 30 80 75 Dudesly 35 20 25 Required: 1. Compute the amount that should be reported for the ending inventory using the LCM rule applied to each item. 2. How will the write-down of inventory to lower of cost or market affect the companys expenses reported for the year ended December 31?