Micro-Processors Unlimited uses the lower of cost or market method in valuing its inventory items and assumes a last-in, first-out (LIFO) inventory cost flow. The LCM rule is applied on an aggregate inventory basis. Before applying the LCM rule, the inventory at December 31, 2011 consists of 100,000 units at a total cost of $13,000,000. The inventory could be sold for $12,000,000 and selling costs are immaterial. Micro-Processors has a normal profit margin of 30% of selling price. The reproduction cost of its inventory is $12,500,000. What is the book value of the company's inventory at December 31, 2011 after applying LCM? O a. $12,500,000 O b. $12,000,000 O c. $11,000,000 d. $8,400,000 e. None of the above is correct