Given the Historical Cost of Product Dominoe Is $22, the Selling

Multiple Choice

Given the historical cost of product Dominoe is $22, the selling price of product Dominoe is $30, costs to sell product Dominoe are $5, the replacement cost for product Dominoe is $20, and the normal profit margin is 20% of sales price, what is the amount that should be used to value the inventory under the lower-of-cost-or-market method?

A) $22.
B) $19.
C) $20.
D) $25.