Answer the following:

Please use the following information to answer all questions in this section. Jessica sells two items, Item A and Item B. Below is the relevant data for Inventory Items A and B at December 31: Item A Item B Estimated Selling Expense $2,500 $2,000 Cost $3,750 $6,575 Normal Profit $1,000 $2,250 Estimated Selling Price $6,500 $10,000 Replacement Cost $5,000 $6,000 Assume Jessica applies the lower of cost-or-market method on an entire inventory basis. What is the value of Inventory that would be reported on Jessica's balance sheet at at December 31st? $8,000 $12,000 $10,325 $9,750 Assume Jessica applies the lower of cost-or-NRV (net realizable value) method on an item-by-item basis. What is the value of Inventory that would be reported on Jessica's balance sheet at December 31st? $9,750 $12,000 $8,000 $10,325 Assume Jessica applies the lower of cost-or-NRV (net realizable value) method on an entire inventory basis. What is the value of Inventory that would be reported on Jessica's balance sheet at at December 31st? $9,750 $10,325 $8,000 $12,000