Tatum Company has four products in its inventory. Information about the December 31, 2013, inventory is as follows: E 9-3 Lower of cost or market L01 Total Cost Total Replacement Cost Total Net Realizable Value Product 101 102 103 104 $120,000 90,000 60,000 30,000 $110,000 85,000 40,000 28,000 $100,000 110,000 50,000 50,000 The normal gross profit percentage is 25% of cost. Required: 1. Determine the statement of financial position inventory carrying value at December 31, 2013, assuming the LCM rule is applied to individual products. 2. Assuming that Tatum recognizes an inventory write-down as a separate income statement item, determine the amount of the loss, E9-4 U.S. GAAP; lower of cost or market LO1 LOZ Refer to the situation described in Exercise 9-3. Assume that Tatum Company prepares its financial statements according to the U.S. GAAP. Required: 1. Determine the statement of financial position inventory carrying value at December 31, 2013, assuming Tatum applies the LCM rule to individual products, 2. Prepare a journal entry to record the inventory write-down, if necessary