. Given the following information for the Tatnall Company:

Date	Cost	Market
December 31, 2004	$500	$500
December 31, 2005	700	680
December 31, 2006	760	730

If the direct method of recording lower of cost or market is in use, which December 31, 2006 entry is correct?

a.	Loss Due to Market Valuation 30 Allowance to Reduce Inventory to Market 30
b.	Inventory 760 Income Summary 760
c.	Loss Due to Market Valuation 10 Allowance to Reduce Inventory to Market 10
d.	Inventory 730 Income Summary 730