TROYARD HOME IMPROVEMENTS installs replacement siding, windows, and louvered glass doors for single family homes and condominium complexes in Quezon City. The company is in the process of preparing its annual financial following data concerning inventory. At May 31, 2014, the balance in TROYARD's Raw Material Inventory account was P1,224,000, and the Allowance to Reduce Inventory to NRV had a credit balance of P82,500. Lansang summarized the relevant inventory cost and idrkei did ai ividy 3i,2o14, in uve suneduie beiow. Sales Sales Net Cost Price Realizable Value Aluminum siding Cedar shake siding Louvered giass dours P210,000 P192,000 P168,000 258,000 282,000 336,000559,200 420,000464 400 254,400 504,900 42 Thermal windows 1. What amount should be reported as Allowance to Reduce Inventory to Net Realizable Value at May 31, 2014? B. P273,600 C. P45,600 D. P168,900 What amount of gain or loss should be recorded for the year ended May 31, 2014, due to the change in the Aiiowance to euuce invernitosy to fiet Freaiavie vaiue? 2. A. P82,500 gain B. P40,800 loss C. P86,400 loss D. P36,900 gain