38.

Data related to the inventories of Mountain Ski Equipment and Supplies is presented below: Selling price Cost Replacement cost Sales commission Normal gross profit ratio Skis $195,000 135,500 135,000 10% 20% Boots $165,000 140,500 131,500 10% 20% Apparel $135,000 97,500 125,000 10% 15% Supplies $75,000 55,500 65,000 10% 15% In applying the lower of cost or market rule, the inventory of boots would be valued at: Multiple Choice $148,500. $140,500. Multiple Choice $148,500. $140,500. $131,500 $115,500