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

	Skis				Boots				Apparel				Supplies
Selling price	$	180,000			$	140,000			$	120,000			$	60,000
Cost		128,000				133,000				90,000				45,000
Replacement cost		120,000				130,000				110,000				41,000
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

• $45,000.

• $54,000.

• $41,000.

• $60,000.