The following information refer to inventory item A of Company XYZ on December 31, Year 1.

Historical cost $200,000

Replacement cost $100,000

Estimated selling price $170,000

Estimated cost to complete and sell $20,000

Normal profit margin (as % of net realizable value) 20%

Determine the market value for inventory item A under the US GAAP lower-of-cost-or-market rule for inventories.

Determine the lower-of-cost-or-market (LCM) under US GAAP.