SLR Corporation has 1,200 units of each of its two products in its year-end inventory. Per unit data for each of the products are as follows:

	Product 1				Product 2
Cost		$	59			$	43
Replacement cost			57				35
Selling price			79				45
Selling costs			15				7
Normal profit margin			19				11

Determine the balance sheet carrying value of SLRs inventory assuming that the lower of cost or market (LCM) rule is applied to individual products. What is the before-tax income effect of the LCM adjustment?

Required 1 Required 2 Determine the balance sheet carrying value of SLR's inventory assuming that the lower of cost or market (LCM) rule is applied to individual products Per Unit Inventory Value Lower of Cost or Market Product Cost Market UnitCost $59 1,200 2 43 1,200 42,000 Cost Inventory value $ 42,000 Required 1 Required 2 >