On October 15, 2025, Wildhorse Co. purchased 3,720 barrels of fuel oil with a cost of $223,200 ($60 per barrel). Wildhorse is holding this inventory in anticipation of the winter 2026 heating season. Wildhorse accounts for its inventory at the lower-of-FIFO-cost-or-net realizable value. To hedge against potential declines in the value of the inventory, Wildhorse also purchased a put option on the fuel oil. Wildhorse paid an option premium of $300 for the put option, which gives Wildhorse the option to sell 3,720 barrels of fuel oil at a strike price of $60 per gallon. The option expires on March 1, 2026. The following data are available with respect to the values of the fuel