Camping Gear Company Had 500 Units of Inventory on Hand

Camping Gear Company had 500 units of inventory on hand at the end of the year.These were recorded at a cost of $14 each using the last-in,first-out (LIFO) method.The current replacement cost is $10 per unit.The selling price charged by Camping Gear Company for each finished product is $17.As a result of recording the adjusting entry as per the lower-of-cost-or-market rule,the gross profit will ________.

A) increase by $5,000
B) decrease by $5,000
C) increase by $2,000
D) decrease by $2,000