Washington Distribution Co

Multiple Choice

Washington Distribution Co.has determined its December 31, 2017 inventory on a FIFO basis at $240,000.Information pertaining to that inventory follows: Washington records losses that result from applying the lower of cost and net realizable value rule.At December 31, 2017, the loss that Washington should recognize is

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