Question: In its 2012 annual report Research in Motion reported that it wrote down its PlayBook inventory by $485,000,000 because its cost exceeded its market value.

In its 2012 annual report Research in Motion reported that it wrote down its PlayBook inventory by $485,000,000 because its cost exceeded its market value. Show the effects of this adjustment on the accounting equation and show the journal entry that the company would have made to record it.

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