TII Industries makes over-voltage protectors, power systems, and electronic products primarily for use in the communications industry. Several years ago, the company reported that it took "a substantial inventory write down" resulting in a loss for its third quarter ending June 24. The write down was estimated to be $12 million and stems from customers' changes in product specifications. A. Provide a journal entry to record the write-down. B. Assume that the original cost of inventory was $52 million and that it was written down to its market value of $40 million. If TII sells it for $48 million cash in the following period, what journal entries would be recorded? Assume that TII uses the perpetual inventory method. C. Applying the lower-of-the-cost-or-market rule in this case would cause TII to recognize a loss in the period of the write down and income in the subsequent period. Does such recognition seem appropiate? Why or why not?