Distribution Co. has determined its December 31, 2020 inventory on a FIFO basis at $861,000 (cost basis).

Information pertaining to that inventory follows Estimated selling price $910,000 Estimated cost of disposal 35,000 Normal profit margin 89,000 Current replacement cost 821,000 Pillow records losses that result from applying the lower-of-cost-or-net-realizable-value rule.

At December 31, 2020, the loss that Pillow should recognize is

a) $8,000 loss

b) $14,000 loss

c) No loss recognized

d) $11,000 loss