Given the following information for the Network Company:

Date	Cost	Market
December 31, 2004	$ 800	$ 800
December 31, 2005	1,000	940
December 31, 2006	1,100	1,060

If the allowance method of recording lower of cost or market is in use, which December 31, 2006 entry is not correct?

a.	Loss Due to Market Valuation 40 Allowance to Reduce Inventory to Market 40
b.	Allowance to Reduce Inventory to Market 20 Loss Recovery Due to Market Valuation 20
c.	Inventory 1,100 Income Summary 1,100
d.	Income Summary 1,000 Inventory 1,000

Please explain the answer. Thank you.