At December 31, 2020, the Following Information Was Available from Hampshire

At December 31, 2020, the following information was available from Hampshire Corp.'s accounting records: $$\begin{array} { l l l } & \text { Cost } & \text { Retail } \\\text { Inventory, Jan } 1& \$ 147,000 & \$ 215,000 \\\text { Purchases } & 763,000 & 1,155,000 \\\text { Additional markups } &---&\underline{40,000}\\\text { Available for sale } &\underline{\$910,000} &\underline{\$ 1,410,000} \\\end{array}$$
Sales for the year totalled $1.1 million. Markdowns amounted to $10,000. Under the lower of average cost and market method, Hampshire's estimated inventory at December 31, 2020 was

A) $188,500.
B) $195,000.
C) $200,071.
D) $205,070.