Springer Anderson Gymnastics prepared its annual financial statements dated December 31. The company reported its Inventory using the LIFO inventory costing method but did not compare the cost of its ending inventory to its market value (replacement cost). The preliminary income statement follows: Sales Revenue $ 140,000 Cost of Goods Sold Beginning Inventory $ 15,000 Purchases 91,000 Goods Available for Sale 106,00 Ending Inventory 22,000 Cost of Goods Sold 84,000 Gross Profit 56,000 Operating Expenses 31,000 Income from Operations 25,000 Income Tax Expense (30%) 7.500 Net Income $ 17,500 Assume that you have been asked to restate the financial statements to incorporate the LCM/NRV rule. You have developed the following data relating to the ending inventory: Assume that you have been asked to restate the financial statements to incorporate the LCM/NRV rule. You have developed the following data relating to the ending inventory: Purchase Cost Replacement Per Cost per Item Quantity Unit Total Unit 1,500 $ 3 $ 4,500 $ 4 B 750 4 3,000 2 3,500 2 7,000 1 D 1,500 5 7,500 3 $ 22,000 Required: 1. Restate the income statement to reflect LCM/NRV valuation of the ending inventory. Apply LCM/NRV on an item-by-item basis. 2. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1