The following information relates to Royal Manufacturers: Cost of inventory = $54,000 Estimated selling price = $72,000 Estimated selling costs = $15,000 Replacement cost = $52,000 Normal profit margin = $7,000 Assuming that the company follows U.S. GAAP, and uses the LIFO method, the value of inventory that it should record on its balance sheet is closest to:

a. 54.000

b. 39,000

c. 52,000