Best Deals Has Six CD Players in Ending Merchandise Inventory

Best Deals has six CD players in ending merchandise inventory on December 31. The players were purchased in November for $170. The price lists from suppliers indicate the current replacement cost of a CD player to be $168. Which of the following statements is true of the effects of the adjustments to ending merchandise inventory on the cost of goods sold?

A) The cost of goods sold would increase by $2.
B) The cost of goods sold would not be affected.
C) The cost of goods sold would decrease by $12.
D) The cost of goods sold would increase by $12.