Study Appendix 16A. Hamlin Toy Company prepared financial statements using U.S. GAAP. It uses cost or market, whichever is lower, for its inventories.

There were no sales or purchases during the periods indicated, although selling prices generally fluctuated in the same directions as replacement costs. What amount for merchandise inventories would you show on the quarterly balance sheet on the dates listed next?

Invoice CostReplacement Cost March 31, 20X1 June 30, 20XI September 30, 20X1 December 31, 20X ! $200,000 200,000 200,000 200,000 S170,000 180,000 205.x00 150,000