4. When Mercator Manufacturing Inc. checked its stores, it had the following inventory on hand as at December 31, 2015: (i) 5,000 litres of lubricating oil that had cost $2.50 per litre: As at December 31, the replacement price was $3.00 per litre. (ii) 50,000 kg of steel that had cost $0.50 per kg: As at December 31, the replacement price was $0.48 per kg. (iii) Spare parts that had cost $25,000: Mostly for production machinery that was no longer in use, so it was unlikely they could be used. They have no resale value. (iv) A replacement control unit for a customer's milling machine, which has a resale value of $10,000: The control unit was bought by the customer so that Mercator could use it to repair their milling machine. 165 4. When Mercator Manufacturing Inc. checked its stores, it had the following inventory on hand as at December 31, 2015: (i) 5,000 litres of lubricating oil that had cost $2.50 per litre: As at December 31, the replacement price was $3.00 per litre. (ii) 50,000 kg of steel that had cost $0.50 per kg: As at December 31, the replacement price was $0.48 per kg. (iii) Spare parts that had cost $25,000: Mostly for production machinery that was no longer in use, so it was unlikely they could be used. They have no resale value. (iv) A replacement control unit for a customer's milling machine, which has a resale value of $10,000: The control unit was bought by the customer so that Mercator could use it to repair their milling machine. 165