Isaac Company developed the following information about its inventories in applying the lower of cost or market (LCM) basis in valuing inventories:

Product Cost Market

A $55,000 $60,000

B $40,000 $36,000

C $80,000 $81,000

Question: If Isaac applies the LCM on the item-by-item basis, what should be the value of its inventory reported on the balance sheet? Select one: a. $181,000 b. $179,000 c. $171,000 d. $173,000 e. $175,000