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 $ $146,000$

Cost of Goods Sold

Beginning Inventory $ $16,500$

Purchases $94,000$

Goods Available for Sale $110,500$

Ending Inventory $25,730$

Cost of Goods Sold $84,770$

Gross Profit $61,230$

Operating Expenses $32,500$

Income from Operations $28,730$

Income Tax Expense $(40\%)11,492$

Net Income $ $17,238$

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: