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

	Skis				Boots				Apparel				Supplies
Selling price	$	181,000			$	151,000			$	121,000			$	61,000
Cost		128,500				133,500				90,500				48,500
Replacement cost		121,000				130,100				111,000				51,000
Sales commission		15	%			15	%			15	%			10	%
Normal gross profit ratio		25	%			25	%			20	%			20	%

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

Multiple Choice

• $42,700.

• $54,900.

• $51,000.

• $48,500.