The following information refer to inventory item A of Company XYZ on December 31, Year 1.

Historical cost $200,000

Replacement cost $100,000

Estimated selling price $170,000

Estimated cost to complete & sell $20,000

Normal profit margin (as % of net realizable value) 20%

d) Under US GAAP rules, provide the write-down journal entry for inventory item A in Year 1 if a write-down is necessary.