Data related to the inventories of Noel Medical Supply Company is presented below.The company applies lower of cost or market on an item by item basis.

Surgical Surgical Rehab Rehab

Equipment Supplies Equipment Supplies

Selling price $260 $120 $340 $165

Cost $ 170 $90 $ 250 $ 162

Replacement cost $ 240 $80 $210 $ 158

Disposal cost $ 30 $5 $ 25 $10

Normal profit margin $ 78 $ 36 $ 102 $33

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

A)$230

B)$240

C)$170

D)$152