Which of the following is true regarding the valuation of inventory for tax purposes?

Question 1 options:

1)

Inventory can be valued at the lower of cost or market, or all at market.

2)

Inventory can be valued all at cost, or all at market.

3)

Inventory can be valued at the lower of cost or market, or all at cost, or all at market.

4)

All inventory must be valued at the lower of cost or market.