The following information was taken from the records of Trudys Trinkets:

		Cost	Market Value
Item	Quantity	per Unit	per Unit
A	50	$24	$18
B	20	40	42
C	10	20	10

Trudys reports inventory at the lower of cost or market (applied individually). The necessary adjusting entry would

a. reduce assets and equity by $400.

b. increase assets and equity by $2,200.

c. reduce assets and equity by $360.

d. reduce assets and increase liabilities by $400.