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: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:

PA$7-2($Algo$)$ Evaluating the Income Statement and Income Tax Effects of Lower of Cost or Market$/$Net Realizable Value $[$LO $7-4]$

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:

$\backslash$table$[[\backslash$table$[[$Sales Revenue$],[$Cost of Goods Sold$]],,$$$148,000$