Tascon Corporation sells coffee beans, which are sensitive to price fluctuations. The following inventory information is available for this product at December 31, 2011:

Instructions
(a) Calculate Tascon's inventory at the lower of cost and net realizable value.
(b) Prepare any journal entry required to record the LCNRV, assuming that Tascon uses a perpetual inventory system.
(c) Assume that Tascon still holds this inventory a year later and that it has recovered its decline in value; that is, the coffee's net realizable value exceeds its cost. Should Tascon carry its inventory at December 31, 2012, at cost, net realizable value, or some other value? Explain

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Coffee Bean Coffea Arabica Coffea Robusta Units 13,000 bags 5,000 bags Unit Cost $5.60 3.40 Net Realizable Value $5.55 3.50