Rowan Company has four different categories of inventory. The quantity, cost, and market value for each of the inventory categories are as follows:ItemQuantityCostPer UnitMarket Value Per Unit1220$ 4.40 $ 4.60 2130$6.20 $ 6.00 3100$10.00 $9.25 425$20.50 $25.00 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. Decrease total assets and stockholders' equity by $101.00.
B. Increase total assets and stockholders' equity by $55.50.
C. Have no effect on total assets or stockholders' equity.
D. Decrease total assets and stockholders' equity by $79.00.
Answer: C
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