You received partial credit in the previous attempt.

Sanchez Company was formed on January $1$ of the current year and is preparing the annual financial statements dated December $31,$ current year. Ending inventory information about the four major items stocked for regular sale follows:

$\backslash$table$[[,$ENDING INVENTORY,,CURRENT YEAR$],[$Item$,$Quantity,Unit cost When,Net Realizable Value,$],[$on Hand,Acquired $($FIF$0),($Market$)$ at Year$-$End,,$],[$A$,30,$$$20,25,],[$B$,65,50,54,],[$C$,45,67,65,],[$D$,20,37,42,]]$

Required:

Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item$-$by$-$item basis.

What will be the effect of the write$-$down of inventory to lower of cost or net realizable value on cost of goods sold for the year ended December $31,$ current year?

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Required $2$

Compute the valuation that should be used for the current year ending inventory using lower of cost or net realizable value applied on an item$-$by$-$item basis.

$\backslash$table$[[\backslash$table$[[$Item$],[A$