Data related to the inventories of Alpine Ski Equipment and Supplies is presented below:

	Skis				Boots				Apparel				Supplies
Selling price	$	167,000			$	154,000			$	103,000			$	65,000
Cost		137,000				140,000				72,100				45,500
Replacement cost		119,000				122,000				92,100				41,500
Sales commission		10	%			10	%			10	%			10	%

In applying the lower of cost or net realizable value rule, the inventory of supplies would be valued at:

Multiple Choice

• $42,500.

• $45,500.

• $41,500.

• $58,500.