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 $130,000 Sales Revenue Cost of Goods Sold Beginning Inventory Purchases $12,500 86,000 Goods Available for Sale Ending Inventory (FIFO cost) 98,500 22,350 Cost of Goods Sold 76,150 Gross Profit Operating Expenses 53,850 28,500 25,350 7,605 Income from Operations Income Tax Expense (30%) Net Income $ 17,745 Assume that you have been asked to restate the financial statements to incorporate LCM. You have developed the following data relating to the ending inventory: Market Value per Unit $3.50 1.50 0.75 2.50 Item Quantity Per Unit T Purchase Cost Total 2,250 700 3,000 2,250 $2.50 $ 5,625 2,100 4,500 10,125 3.00 1.50 4.50 $22,350