Data related to the inventories of Noel Medical Supply Company is presented below. The company applies lower of cost or net realizable value (LCNRV) and lower of cost or market (LCM) on an item by item basis.

surgical equipment surgical supplies rehab equipment rehab supplies

selling price 260 120 340 165

cost 170 90 250 162

replacement cost 240 80 210 158

disposal 30 5 25 10

normal profit margin 78 36 102 33

1. In applying the LCNRV rule, the inventory of surgical equipment would be valued at:

A) $230

B) $240

C) $170

D) $152

2. In applying the LCNRV rule, the inventory of surgical supplies would be valued at:

A) $115

B) $90

C) $80

D) $69

3. In applying the LCM rule, the inventory of rehab equipment would be valued at:

A) $315

B) $250

C) $213

D) $210

4. In applying the LCM rule, the inventory of rehab supplies would be valued at:

A) $122

B) $158

C) $162

D) $155