Reichart Company Has Four Different Categories of Inventory

Multiple Choice

Reichart 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) None of these.