Data related to the inventories of Kimzey Medical Supply are presented below: Surgical Surgical Rehab Rehab Equipment Supplies Equipment Supplies Selling price $ 320 $ 180 $ 400 $ 225 Cost 230 150 310 222 Replacement cost 300 140 295 218 Costs to sell 54 17 37 34 Normal gross profit ratio 30 % 30 % 30 % 20 % In applying the lower of cost or market rule, the inventory of surgical equipment would be valued at:

Multiple Choice

$170.

$300.

$266.

$230.