A company accounts for its inventory using the first-in, first-out (FIFO) method. The following information pertains to the inventory at the end of the fiscal year:

Historical cost	$150,000
Current replacement cost	120,000
Net realizable value (NRV)	125,000
Normal profit margin	15,000
Fair value	140,000

What amount should the company report as inventory on its year-end balance sheet?

A.

$150,000

B.

$140,000

C.

$120,000

D.

$125,000