The inventory destroyed in the warehouse fire was recorded on the books at a cost of $750,000 (LIFO). Benjamin has estimated that $125,000 of the lost inventory was comprised of rare parts that are not replaceable. The insurer has agreed to pay Benjamin for the fair market value of all lost inventory in the amount of $870,000. Benjamin plans to replace the inventory that can be replaced upon receipt of the insurance proceeds. The proceeds are expected to be received in late January or early February. Analyze the information above, and prepare a memorandum addressing the correct accounting for the transactions above. In your memo, specifically address the following items: - Apply and explain all relevant ASC sections related to the each transaction - Record all entries for Benjamin. - Show and explain all calculations for each journal entry, and use the ASC to support your assumptions and computations. Must give specific ASC case numbers, ex. ASC 845-10-30-6. *( asc.fasb.org)