Use the Following Information to Answer Questions
Handel Inc

Use the following information to answer questions
Handel Inc.values its inventory on an LCM basis.The following data came from the 2011 inventory, which consisted of two items: $\begin{array}{lrr}&\text { Item \# 130}&\text { Item \# 140 }\\\hline\text { Original cost } & \$ 12,000 & \$ 15,000 \\\text { Selling price } & 15,000 & 26,000 \\\text { Estimated selling costs } & 5,000 & 10,000 \\\text { Replacement cost } & 13,000 & 15,000 \\\text { Normal profit margin } & 1,500 & 1,000\end{array}$
-The appropriate carrying value for the entire inventory when applying the LCM rule using net realizable value on an item-by-item basis would be:

A) $25,000
B) $26,000
C) $27,000
D) $28,000