Nutone Values Its Inventory on the Lower of Cost and Market

Multiple Choice

Nutone values its inventory on the lower of cost and market basis. The following data came from the 20X7 inventory, which consisted of two items: $$\begin{array} { | l | r | r | } \hline & \text { Components } & \text { Cables } \\\hline \text { Original cost } & \$ 12,000 & \$ 15,000 \\\hline \text { Selling price } & 15,000 & 26,000 \\\hline \text { Estimated selling costs } & 5,000 & 10,000 \\\hline \text { Normal profit margin } & 1,500 & 1,000 \\\hline\end{array}$$ What would be the value of inventory on Nutone's statement of financial position?

A) $29,000
B) $24,000
C) $25,000
D) $27,000