Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it failed to apply LCM to the ending inventory. The preliminary income statement follows:

Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company used the FIFO inventory costing method, but it failed to apply LCM to the ending inventory. The preliminary income statement follows: $160,000 Sales Revenue Cost of Goods Sold S 20,000 101,000 Beginning Inventory Goods Available for Sale Ending Inventory (FIFO cost) 121,000 38,140 Cost of Goods Sold 82,860 Gross Profit Operating Expenses 77,140 36,000 Income from Operations 41,140 8,228 Income Tax Expense (20%) Net Income $32,912 Assume that you have been asked to restate the financial statements to incorporate LCM. You have ending inventory. Purchase Cost ltem Quantity Per Unit Total Market Value per Unit 2,000 800 4,500 2,000 $4.00 8,000 4,640 13,500 12,000 5.80 3.00 6.00 $5.00 2.90 1.45 4.00 D $38,140