Information pertaining to the inventory of Paddington Company follows.

	FIFO Cost	Selling Price	Replacement Cost
Category: Supreme
Item A	$3,500	$4,000	$3,000
Item B	4,500	4,500	4,800
Item C	11,000	11,000	10,500
Category: Classic
Item X	18,000	18,000	19,000
Item Y	22,000	26,500	26,000
Item Z	35,000	30,000	33,000

The company has a normal profit margin of 20% of selling price and has no additional costs to complete or sell the items.

What is the balance of Paddingtons inventory on December 31, 2020, after applying the lower-of-cost-or-net-realizable value rule to each inventory category?

$92,800

$93,500

$92,000

$94,000