Data related to the inventories of TMH Medical Supply are presented below: Surgical Equipment Surgical Rehab Supplies Equipment Rehab Supplies Selling price $260 $120 $340 $165 Cost 170 90 250 162 Replacement cost 240 80 235 158 Costs to sell 30 5 25 101 Normal gross proftratio 30% 30% 30% 20% In applying the lower of cost or market rule, the inventory of rehab supplies would be valued at: $155 O $158 $122 O $162