Moore Company Purchased an Item for Inventory That Cost $20

Multiple Choice

Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $30. It was determined that the replacement cost is $18 per unit. Using the lower of cost or market rule, what amount should be reported on the balance sheet for inventory?

A) $18.
B) $20.
C) $7.
D) $5.