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Sandhill 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

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Sandhill 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 Sandhill, has gathered the following data concerning inventory. At May 31, 2020, the balance in Sandhill's Raw Materials Inventory account was $420,240, and Allowance to Reduce Inventory to Market had a credit balance of $27,690. 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 Sandhill'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 Cedar shake siding Louvered glass doors Thermal windows Total Cost $72,100 88,580 115,360 144,200 $420,240 Replacement Cost $64,375 81,782 127.720 129,780 $403,657 Sales Price $65.920 96,820 191,992 159.444 $514,176 Net Realizable Value $57,680 87.344 173,349 144,200 $462,573 Normal Profit $5,253 7,622 19,055 15,862 $47,792 (21) 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) $

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