Ryan Distribution Co

Multiple Choice

Ryan Distribution Co. has determined its December 31, 2014 inventory on a FIFO basis at $490,000. Information pertaining to that inventory follows: Ryan records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2014, the loss that Ryan should recognize is

A) $0.
B) $10,000.
C) $20,000.
D) $40,000.