1. Data related to the inventories of Ace Medical Supply arepresented below: (Ace uses FIFO for their inventory)

		Surgical				Rehab
		Supplies				Equipment
Selling price		$	100			$	340
Cost			90				250
Costs to sell			15				25

In applying the lower of cost or net realizable value rule, theinventory of rehab equipment would be valued at:

1. $315.
2. $340.
3. $225.
4. $250.