An Inventory Loss from Market Value Declines of $200, 000 $\text { Three Months Ended }$

An inventory loss from market value declines of $200, 000 occurred in August 2010.Marco Sales Company recorded this loss in August after its March 31 and June 30 interim reports were issued.None of this loss was recovered by the end of the year.How should this loss be reflected in Marco's quarterly income statements? $\text { Three Months Ended }$
$\begin{array}{llll}&3/31&6/30&9/30&12/31\\\text { I. } & - & - & \$ 200,000 & - \\\text { II. } & - & - & 100,000 & \$ 100,000 \\\text { III. } & \$ 50,000 & \$ 50,000 & 50,000 & 50,000 \\\text { IV. } & -- & -- & -- & 200,000\end{array}$

A) I
B) II
C) III
D) IV