Wolf Ltd. (Wolf) uses the lower of cost and market rule to value its inventory. Wolf's inventory on December 31, 2014 had 100,000 units of inventory on hand with a total cost of $780,000 and a NRV of $700,000. On March 31, 2015, 30 percent of the inventory that was on hand at the end of December was still in inventory. On March 31, 2015 the NRV per unit had recovered 75 percent of the amount written down in December.

Required:

a. By how much should Wolf’s inventory be written down in 2014?

b. Prepare the journal entry Wolf will prepare to record the writedown in 2014.

c. What amount should be reported for inventory on Wolfs December 31, 2014 balance sheet?

d. By how much should Wolf’s inventory be written up on March 31, 2015?

Prepare the journal entry needed to write up the inventory.

f. What amount should be reported for inventory on Wolf's March 31, 2015 balance sheet? Assume no new inventory was purchased in the first quarter of 2015.