The following information pertains to one item of inventory of the Forge Company:

	Boots
Sales Price	$150,000
Cost	133,000
Replacement Cost	130,000
Sales Commission	10% of sales price
Normal profit margin	20%

Applying the lower of cost or net realizable value rule, this item should be valued at:

$135,000

$133,000

$130,000

$105,000