GingerSnaps is a local boutique specializing in unique home furniture. It accounts for its inventory using lower of cost or market (LCM) under U.S. GAAP. At the most recent inventory count on December 31, 2021, the inventory manager gathered the following information: Cost Replacement Cost Sales Price Disposal Cost Chairs 85,000 82,500 80,000 2,500 Tables 125,000 123,000 195,000 10,000 Lamps 25,000 20,000 75,000 - Rugs 57,000 56,000 62,000 5,250 The boutique has an automated perpetual inventory system that keeps track of the inventory by individual item. The boutique does not group or aggregate items for purposes of inventory valuation. Prior to the inventory count, the allowance for inventory had a credit balance of $5,200. There are no additional selling costs or disposal costs other than the disposal costs noted in the table. The normal profit margin is 20% of the sales price. The accountant for the boutique is trying to decide which LCM method the boutique should use. The accountant is aware that first-in, first-out lower of cost or market (FIFO LCM) is the easiest method to use but has received pressure from the boutiques external accountants to use last-in, first-out lower of cost or market (LIFO LCM). In preparation for the questions that you will be asked on the above scenario, calculate the net realizable value of each inventory item using FIFO LCM, and then select the LCM. In addition, calculate the ceiling and floor for the inventory and the designated market value using LIFO LCM. Once you have selected the designated market value for each inventory item, determine the LCM using LIFO LCM. Based on this scenario and the given information, answer the following questions:

1. If the boutique uses LIFO LCM, what is the LCM value of the chairs?