Question: I don't understand why this shows incorrect, please help, TYIA. PA7-2 (Algo) Evaluating the Income Statement and Income Tax Effects of Lower of Cost or

I don't understand why this shows incorrect, please help, TYIA.

I don't understand why this shows incorrect, please help, TYIA. PA7-2 (Algo)Evaluating the Income Statement and Income Tax Effects of Lower of Cost

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 prepared its annual financial statements dated December 31. The company reported 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 LCM/NRV rule. You have developed the following data relating to the ending inventory: Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below

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