An analysis of the inventory owned by Owens Company as of the Company’s fiscal closing date is shown in the following table. 

Item         Quantity           Cost per    Unit Market Value per unit

  A              200                     $20                        $17

  B              190                     $50                        $52   

  C              400                     $34                         $30

  D              320                     $25                         $29

 

Assuming Owens applies the lower-of-cost-or-market rule on an individual basis, the Company would be required to recognize an expense amounting to

• A.      $1,660.

• B.        $2,200.

• C.        $3,860.

• D.       $540.