On October 15,2025 , Cullumber Co. purchased 4,060 barrels of fuel oil with a cost of $247,660 ( $61 per barrel). Cullumber is holding this inventory in anticipation of the winter 2026 heating season. Cullumber accounts for its inventory at the lower-of-FIFO-cost-ornet realizable value. To hedge against potential declines in the value of the inventory, Cullumber also purchased a put option on the fuel oil. Cullumber paid an option premium of $290 for the put option, which gives Cullumber the option to sell 4,060 barrels of fuel oil at a strike price of $61 per gallon. The option expires on March 1,2026. The following data are available with respect to the values of the fuel of inventory and the put option