Data related to the inventories of Kimzey Medical Supply are presented below: Surgical Equipment Surgical Supplies Rehab Equipment Rehab Supplies Selling price $ 310 $ 170 $ 390 $ 215 Cost 220 140 300 212 Replacement cost 290 130 285 208 Costs to sell 50 15 35 30 Normal gross profit ratio 20% 20% 20% 30% In applying the lower of cost or market rule, the inventory of surgical equipment would be valued at:

$198

$290

$260

$220