Brooks Company carries three inventory items. The following information pertains to the ending inventory:

Required
a. Determine the ending inventory that Brooks will report on the balance sheet, assuming that it applies the lower-of-cost-or-market rule to individual inventory items.
b. Calculate the adjustment required under both methods, assuming the decline in value is immaterial.

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Unit Market Value $55 75 40 Unit Cost Quantity Item $60 80 120 170 K 110 30