McSwain Corporation is reviewing its inventory at year$-$end $20$X$1.$ McSwain accounts for its inventory using LIFO and applies the

Lower$-$of$-$Cost$-$or$-$Market $($LCM$)$ rule. The inventory includes a batch of electronic components. The cost to purchase these

components was $$20,000.$ However, due to recent technological advances, the current replacement cost has dropped to $$15,000.$ The

net realizable value of these components is $$18,000$ and the normal profit margin is $$2,000.$

After applying LCM, at what value should McSwain report the electronic components on its December $31,20$X$1$ balance sheet?

$$15,000$

$$20,000$

$$16,000$

$$18,000$