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Peterson Company is preparing its annual financial statements dated December 31, 2020. Ending inventory information about the five major items stocked for regular sale follows: Item B Quantity on Hand 58 88 18 38 358 Ending Inventory Unit Cost When Acquired (FIFO) $15.80 30.80 45.80 25.80 10.80 Net Realizable Value at Year-End $ 12.80 40.80 52.80 30.80 5.80 D E Required: 1. Compute the value of the 2020 ending inventory by using the LC&NRV rule applied on an item-by-item basis. (Do not round intermediate calculations and round the final answers to 2 decimal places.) Item Total Cost Total Market LC&NRV Valuation A B Quantity 58 X 88 x 18 x 38 x 358 x Total D E 2. What will be the effect of the write-down of inventory to LC&NRV on cost of sales for the year 2020? (Round intermediate calculations and final answer to the nearest whole dollar.) Cost of sales will be by 3-a. Assume that 28 units of item E had not been sold by December 31, 2021 and that the net realizable value of that item increased to $8.30 per unit. Calculate the increase in book value. (Do not round intermediate calculations and round the final answer to 2 decimal places.) Increase in book value