Assume That an Entity Acquired 150 Items of Inventory at a Cost

Multiple Choice

Assume that an entity acquired 150 items of inventory at a cost of $90 each,and sold 100 of the items for $160 each when the replacement cost to the entity was $120 each.Also assume that the replacement cost of the 50 remaining items of inventory at year end was $130.What would be the realised holding gain on the inventory that was sold?

A) $7 000 [100 x ($160 - $90) ]
B) $4 000 [100 x ($130 - $90) ]
C) $3 000 [100 x ($120 - $90) ]
D) $500 [50 x ($130 - $120) ]