Jones Corporation uses the inventory allowance method when applying NRV to its inventory. At December 31, 20x2 the cost of the inventory was $100,000 and the market value was $98,000. At December 31, 20x3 the cost of the inventory was $125,000 and the market value was $128,000. Following the NRV rule at December 31, 20x3 this inventory should be valued at:

Multiple Choice

• $123,000

• $125,000

• $128,000

• $130,000