Washington Distribution Co Washington Records Losses That Result from Applying the Lower of on a FIFO

Multiple Choice

Washington Distribution Co. has determined its December 31, 2020, inventory on a FIFO basis at $240,000. Information pertaining to that inventory follows: $\begin{array}{llcc} \text { Etimated selling price } & \$255,000 \\ \text { Estimated cost of disposal } &10,000\\ \text { Normal profit margin } &30,000\\\end{array}$
Washington records losses that result from applying the lower of cost and net realizable value rule. At December 31, 2020, the loss that Washington should recognize is

A) $0.
B) $5,000.
C) $15,000.
D) $25,000.