Simmons, Inc. uses lower-of-cost-or-net-realizable-value to value its inventory and reports under IFRS. Data regarding an item in

Question:

Simmons, Inc. uses lower-of-cost-or-net-realizable-value to value its inventory and reports under IFRS. Data regarding an item in its inventory it as follows:
Cost ......................................... $26
Replacement cost ......................... 20
Selling price ............................... 30
Cost of completion and disposal ....... 2
Normal profit margin .................... 7
What is the lower-of-cost-or-net-realizable-value for this item?
a. $18
b. $26
c. $28
d. $30