On December 31, Barnes Company had 1,000 identical units of Item X in ending inventory. The following information is available: Unit purchase cost = $25 per unit Replacement cost on December 31 = $20 per unit Using the lower-of-cost-or-market rule, which of the following statements would be true? Barnes should not record any transaction because inventory is always recorded at cost. Barnes should increase assets and stockholders' equity $5,000. Barnes should decrease assets and stockholders' equity $5,000. O Barnes should decrease assets and increase stockholders' equity $5,000