What is the effect on the current period income statement and the balance sheet when inventories are

Question:

What is the effect on the current period income statement and the when inventories are written down using the lower of cost or market method? What is the effect on future period income statements and balance sheets?
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...