Juan is engaged in milk production for supply to various customers. The company produced milk with a fair value of 550,000 (that is determined at the time of milking) in the year ended December 31, 2008.

The company also estimated the following costs:

Commission to brokers and dealers 20,000

Levies by regulatory agencies and commodity exchanges 55,000

Transfer taxes and duties 20,000

Transport and other cost necessary to get assets to a market 10,000

The milk should be valued at?

a. 530,000

b. 550,000

c. 445,000

d. 455,000