On January 1st, Year 2, the book value of a car held in inventory is $43,000. On that day, the car manufacturer announces the release of the newer model. The company determines that the selling price of the old model is now $40,000. The expected cost of the eventual sale is $1,000. At what amount should the company record the car in its inventory after the announcement of the new model using the specific identification flow method under U.S. GAAP?

Select one:

a. $42,000

b. $41,000

c. $40,000

d. $39,000