Which of the following regarding the lower of cost or market/net realizable value rule for inventory are true?

i. When the value of inventory increases above the original cost of inventory shown in the financial records, the inventory should be increased to that higher value.
ii. When the value of inventory drops below the original cost of inventory shown in the financial records, net income is reduced.
iii. When the value of inventory drops below the original cost of inventory shown in the financial records, total assets are reduced.

a. (i) only

b. (ii) only

c. (ii) and (iii) 

d. All of the above