The Company uses the lower$-$of$-$cost$-$or$-$market approach. The replacement cost of an inventory item is $$77\mathrm{.}00.$ Net realizable value is $$86\mathrm{.}91.$ Net realizable value less a normal profit margin is $$67\mathrm{.}00.$ The cost of the item is $$77\mathrm{.}42.$ The inventory item would be valued at:

$$77\mathrm{.}00$

$$77\mathrm{.}42$

$$67\mathrm{.}00$

$$86\mathrm{.}91$