The following information on cost and net realizable value of Tech-IT Ltd.'s various inventory categories was gathered at December 31:

Inventory Categories_____________Cost_____________NRV

Desktops.....................................$347,000.............$326,000

Tablets and readers.......................168,700...............224,000

Laptops.........................................221,020...............285,000

Accessories and parts......................97,400................94,300

(a) Calculate the lower of cost and net realizable value for each inventory category within Tech-IT's inventory.

(b) Prepare the entry needed to adjust Tech-IT's inventory value to the lower of cost or net realizable value at December 31.