An analysis of the inventory owned by Owens Company as of theCompany’s fiscal closing date is shown in the following table.
| Item | Quantity | Cost per
Unit | Market Value
per Unit |
| A | 200 | $ | 20 | | $ | 17 | |
| B | 190 | $ | 50 | | $ | 52 | |
| C | 400 | $ | 34 | | $ | 30 | |
| D | 320 | $ | 25 | | $ | 29 | |
Assuming Owens applies the lower-of-cost-or-market rule on anindividual basis, the Company would be required to recognize anexpense amounting to
Multiple Choice
$1,660.
$2,200.
$3,860.
$540.
