Doubt in AS 16

MCQ (ICAI NEW STUDY MATERIAL PG NO 5.127, 4TH QUESTION)

If the amount eligible for capitalisation in case of inventory as per AS 16 is Rs 12,000 and cost of inventory is Rs 40,000 and its net realizable value is  Rs 45,000; What amount can be capitalised as a part of inventory cost.

(a) Rs 12,000.

(b) Rs 5,000.

(c) Rs 7,000.

(d)Rs 10,000.