SLR Corporation has 1,700 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		$	56			$	40
Replacement cost			54				31
Selling price			76				42
Selling costs			12				4
Normal profit			16				8

Determine the 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?

Product	Cost	Market	Per Unit Inventory Value	Unit	Cost	Lower of Cost or Market
1				1,700
2				1,700		52,700
			Cost
			Inventory value