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Please help w explainations. PA7-2 (Algo) Evaluating the Income Statement...

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Accounting

Please help w explainations.
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PA7-2 (Algo) Evaluating the Income Statement and Income Tax Effects of Lower of Cost or Market/Net Realizable Value [LO 7-4] Springer Anderson Gymnastics prepored its annuol finoncial statements doted December 3t. The company reponted its inventory using the LIFO inventory costing method but did not compare the cost of its ending inventory to its market value (replacement cost). The preliminary income statement follows: Assume that you have been asked to restate the financial statements to incorporate the LCMNRV rule. You have developed the following data relating to the ending inventory: Required: 1. Restate the income statement to reflect LCMNRV valuation of the ending inventory. Agply LCMNRV on an Item-by-item basis. 2. Compare the LCMNRV effect on each amount that was changed in the preliminary income statement in requirement 1 . Complete this question by entering your answers in the tabs below. Compare the LCM/NRV effect on each amount that was changed in the preliminary income statement in requirement 1. (Decreases should be indicated by a minus sigh.)

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