Data related to the inventories of the gift shop at HarLand, a Peorian-themed amusement park, is presented below:

	Tennis Balls						Tennis Helmets						Tennis Swords						Tennis Racquets
Selling price	$	180,000				$		140,000				$		120,000				$		60,000
Cost		128,000						133,000						90,000						45,000
Replacement cost		120,000						130,000						110,000						41,000
Sales commission		10	%					10	%					10	%					10	%

In applying the lower of cost or net realizable value rule, the inventory of Tennis Balls would be valued at:

(a) $162,000;

(b) $128,000;

(c) $120,000;

(d) $180,000; or

(e) $18,000.