A company produces a variety of picture frames. It uses lower-of-cost-or-market method to value its inventory. The company has the following amounts. Inventory replacement cost: 45,000 Inventory cost:62,000 Sales value: 70,000 Cost to complete inventory for sale: 4,000 Expected profit margin: 20% What is the net realizable value of this companys inventory?

1. 56,000

2. 62,000

3. 66,000

4. 70,000