Under the lower-of-cost-or-net-realizable-value basis, net realizable value refers to

		an optional inventory valuation technique when the value of the inventory has declined.
		the estimated selling price of the inventory less the costs to complete and sell it.
		the cost of the inventory less the costs to complete and sell it.
		the estimated selling price of the inventory.

Entity B had net sales of $1,000,000 and cost of goods sold of $600,000. Its gross profit rate is:

		40%
		100%
		60%
		0%.