Yang Company purchased 2,000 phones and has 400 phones in its ending inventory at a cost of $90 each and a current replacement cost of $80 each. The net realizable value of each phone in the ending inventory is $70. The ending inventory under lower-of-cost-or-net realizable value is:

(a) $36,000.

(c) $28,000.

(b) $32,000.

(d) None of the above.