SLR Corporation has 2,400 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		$	78			$	48
Selling price			140				50
Costs to sell			10				4

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

Product	Cost	NRV	Per Unit Inventory Value	Unit	Cost	Lower of Cost or NRV
1	$78	$130	$78	2,400	$187,200	$187,200
2	48	46	46	2,400	115,200	110,400
			Cost		$302,400
			Inventory value			$297,600

What is the before-tax income effect of the LCNRV adjustment?

Before-tax income effect

lower by??????