Ryan Distribution Co. has determined its December 31, 2010 inventory on a FIFO basis at $250,000. Information pertaining to that inventory follows:
Estimated selling price $255,000
Estimated cost of disposal 10,000
Normal profit margin 30,000
Current replacement cost 225,000
Ryan records losses that result from applying the lower-of-cost-or-market rule. At December 31, 2010, the loss that Ryan should recognize is
a. $0.
b. $5,000.
c. $20,000.
d. $25,000.