Tatum Company has four products in inventory. Information about December 31, 2016, inventory is as follows:

Product Total Cost Total Net Realizable Value

101 $154,000 $117,000

102 $111,000 $127,000

103 $77,000 $67,000

104 $47,000 $67,000

Required:

1 Determine the book value of inventory at December 31, 2016, assuming the lower of cost and net realizable value rule is applied to individual products.

Product Cost NVR Inventory Value

101

102

103

104

2. Assuming that Tatum reports an inventory write-down as a line item in the income statement, determine the amount of the loss.

Loss from the write-down of inventory