Current Attempt in Progress

$11$

Pal Distributers Inc. values its inventory at the lower of cost and net realizable value. The following data came from the $2020$ inventory, which consisted of two items:

Item#$130$ Item #$140$

Original cost

$$12,000$

$15,000$

$$15\mathrm{.}000$

Selling price

$26,000$

Estimated selling costs

$5,000$

$10\mathrm{.}000$

Replacement cost

$13,000$

$1\mathrm{.}500$

$15,000$

Normal profit margin

$1,000$

The appropriate carrying value for the entire inventory when applying the lower of cost and net realizable value rule using net realizable value on an item$-$by$-$item basis would be

$$25,000.$

$$26,000.$

$$27,000.$

$$28,000.$