It is December 31, 2020, end of year, and the controller of Garcia Corporation is applying the lower-of-cost-and-net-realizable-value (LCNRV) rule to inventories. Before any year-end adjustments Garcia has these data:

Garcia determines that the net realizable value of ending inventory is \(\$ 49,000\). Show what Garcia should report for ending inventory and for cost of goods sold. Identify the financial statement where each item appears. How would investors and creditors know about the change in inventory value?

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Cost of goods sold I listorical cost of ending inventory, as determined by a physical count $410,000 60,000