At 30 June 2020, Tennis World Ltd, a large business taxpayer that uses the periodic inventory system, had the following stock on hand with the following values: Item Market Selling Value Replacement Value Original Cost Price Tennis racquets $27,500 $27,800 $19,800 Tennis balls $1,750 $1,620 $1,880 Tennis clothes $6,800 $7,200 $7,400 Tennis bags $2,500 $2,800 $1,900 Assuming that Tennis World Ltd wishes to minimise its tax payable for the year ended 30 June 2020, the company should value its closing stock at: 

a. $38,550; 

b. $39,420. 

c. $30,980; 

d. $30,120;