At December 31, 2012, the following information was available from Kohl Co.'s accounting records:
Cost Retail
Inventory, 1/1/12 $147,000 $203,000
Purchases 833,000 1,155,000
Additional markups 42,000
Available for sale $980,000 $1,400,000Sales for the year totaled $1,150,000. Markdowns amounted to $10,000. Under the lower-of-cost-or-market method, Kohl's inventory at December 31, 2012 was:
A) $175,000.
B) $182,000.
C) $294,000.
D) $168,000.