Walt Disney Company Data for the year ended December 31, 2023:

Item	Amount
Inventory Cost	$4,500,000
Market Value of Inventory	$4,000,000
Sales	$20,000,000
Cost of Goods Sold	$12,000,000
Operating Expenses	$5,000,000

1. Calculate the amount of inventory to be reported on the balance sheet.
2. Determine the impact on net income due to the write-down of inventory.
3. Discuss the impact of inventory write-down on Disney’s operating income.
4. How should Disney record the inventory write-down in its journal entries?