(Answered) Question a company buys a piece of inventory for 80 almost

Accounting

QUESTION: A company buys a piece of inventory for $80. Almost immediately, the market becomes flooded with these items and the replacement cost falls to $76. The company is trying to determine whether a loss must be recorded because of this drop. Despite the change, the company still believes that it can sell this piece of inventory for $90 but only after spending $15 in selling costs. The normal profit on this type of inventory transaction is $6. In applying lower of cost or market value to inventory, what will now be reported on the balance sheet for this inventory item?

a) $69

b) $75

c) $76

d) $80

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