cub company, a calendar-year entity, had 3,100 geothermal heating pumps in its beginning inventory for 20x1. on december 31, 20x0, the heating pumps had been adjusted down to $900 per unit from an actual cost of $1,020 per unit. it was the lower of cost or market. cub purchased no additional units during 20x1. the following additional information is provided for 20x1: quarter date inventory (units) unit market value 1 march 31, 20x1 1,710 $ 885 2 june 30, 20x1 1,410 930 3 september 30, 20x1 1,340 840 4 december 31, 20x1 990 870 required: respond to the following two independent scenarios as requested. case 1: the company does not have sufficient experience with the seasonal market for geothermal pumps and assumes that any reductions in market value during the year will be permanent.