Ryan Distribution Co

Multiple Choice

Ryan Distribution Co.has determined its December 31, 2010 inventory on a FIFO basis at $250,000.Information pertaining to that inventory follows: Ryan records losses that result from applying the lower-of-cost-or-net realizable value rule.At December 31, 2010, the loss that Ryan should recognize is

A) $0.
B) $5,000.
C) $25,000.
D) $35,000.