Use the Following Information to Answer Questions 70-71

Multiple Choice

Use the following information to answer questions 70-71.
Pal Distributers Inc. values its inventory on an LCM basis. The following data came from the 2020 inventory, which consisted of two items:
-When applying the LCM, the following is true:

A) the inventory account remains at its original value.
B) a contra account to inventory is used.
C) COGS rises when ending inventory is reduced to market value.
D) LCM can only be applied to individual items.