Rowan Company Has Four Different Categories of Inventory

Multiple Choice

Rowan Company has four different categories of inventory.Quantity,cost,market value for each inventory category is shown below:
The company carries inventory at lower-of-cost-or-market applied to the inventory in aggregate.The implementation of the lower-of-cost-or-market rule would:

A) increase assets and equity by $55.50.
B) reduce assets and equity by $101.00.
C) reduce assets and equity by $79.00.
D) leave total assets and equity unchanged.