The Barnes Company developed the following information about its inventories in applying the lower of cost or market (LCM) basis in valuing its inventories: Product A: Cost = $54,000, Market = $60,000; Product B: Cost = $40,000, Market = $38,000; Product C: Cost = $80,000, Market = $81,000. If Isaac applies the LCM basis, the value of the inventory reported on the balance sheet would be

Select one:

a.

$172,000.

b.

$174,000.

c.

$171,000.

d.

$181,000.