Lumber Number Ltd What Effect Will This Information Have on the 2003 Statement

Multiple Choice

Lumber Number Ltd.began business in 2001.It uses a periodic inventory system and values inventory at lower-of-cost-or-market.The following data represents price information related to the inventory on a unit basis: $$\begin{array} { | l | r| r |r |r| r | } \hline & { \text { 2002 Inventory } } & &{ \text { 2003 Inventory } } \\\hline & \text { Beginning } & \text { Ending } & \text { Beginning } & \text { Ending } \\\hline \text { Cost } & \$ 80 & \$ 86 & \$ 86 & \$ 98 \\\hline \text { Market } & 80 & 84 & 84 & 90 \\\hline\end{array}$$ What effect will this information have on the 2003 statement of income if the allowance method is used?

A) $2 holding loss
B) $4 holding loss
C) $6 holding loss
D) $8 holding loss