Footnote $2$ contains information about Ocean's Inventory.

For this question only, if the market value of Ocean's Inventory was $$166,000$ at the end of $2023,$ Ocean's Income Before Tax for $2023$ would have been:

Group of answer choices

lower by $$7,306.$

higher by $$7,306.$

unaffected.

higher by $$30,414.$

lower by $$30,414.$