A physical inventory of Liverpool Company taken at December 31 reveals the following. Per Unit Item Units Cost Market Car audio equipment Speakers 355 $ 110 $ 118 Stereos 270 131 121 Amplifiers 336 106 115 Subwoofers 214 72 62 Security equipment Alarms 490 170 160 Locks 301 113 103 Cameras 222 332 342 Binocular equipment Tripods 195 94 104 Stabilizers 180 115 125 Required: 1. Calculate the lower of cost or market for the inventory applied separately to each item. 2. If the market amount is less than the recorded cost of the inventory, then record the LCM adjustment to the Merchandise Inventory account.