Walter Distribution Co

Multiple Choice

Walter Distribution Co.has determined its December 31, 2010 inventory on a FIFO basis at $240,000.Information pertaining to that inventory follows: Walter records losses that result from applying the lower of cost and market rule.At December 31, 2010, the loss that Walter should recognize is

A) $0.
B) $5,000.
C) $15,000.
D) $25,000.