The taxpayer is an appliance dealer and has the following items of inventory on hand at the end of the year:
Item Cost Replacement
Cost Expected Selling Price
20 big screen TVs $10,000 $14,000 $18,000
200 DVD players 20,000 16,000 18,000
100 stereo systems 24,000 21,000 35,000
$54,000 $51,000 $71,000
Under the lower-of-cost-or-market inventory method, the ending inventory value is:
a) $54,000.
b) $52,000.
c) $51,000.
d) $47,000.