Rowan Company Has Four Different Categories of Inventory

Multiple Choice

Rowan Company has four different categories of inventory.The quantity,cost,and market value for each of the inventory categories are as follows:

The company carries inventory at lower-of-cost-or-market applied to the entire stock of inventory in the aggregate.How would the implementation of the lower-of-cost-or-market rule impact the elements of the company's financial statements?

A) Increase total assets and stockholders' equity by $55.50.
B) Decrease total assets and stockholders' equity by $101.00.
C) Decrease total assets and stockholders' equity by $79.00.
D) Have no effect on total assets or stockholders' equity.