Ryan Distribution Co. has determined its December 31, 2019 inventory on a FIFO basis at $490,000. Information

pertaining to that inventory follows:

Estimated selling price $510,000

Estimated cost of disposal 30,000

Normal profit margin 60,000

Current replacement cost 450,000

Ryan includes unrealized losses that result from applying the lower-of-cost-or-

net realizable value in the cost of goods sold account. At December 31, 2019, the loss that Ryan should recognize is

a. $0.

b. $10,000.

c. $20,000.

d. $40,000.