Final answer:
The Blake Company made a profit by selling one of the inventory items at $40.00. Without specifying which item was sold and the inventory valuation methods, the best answer with the provided information is a gain of $18.00, but it's not definitive.
Step-by-step explanation:
The Blake Company purchased two identical inventory items with different costs and sold one for a profit. To calculate the profit or loss from the sale of one item, we take the selling price and subtract the cost of the item sold. If we use the cost of the less expensive item ($22.00) to calculate, the profit is $40.00 - $22.00 = $18.00. If we use the cost of the more expensive item ($23.00), the profit is $40.00 - $23.00 = $17.00. Since the question does not specify which item was sold, we cannot determine an exact profit amount based on the given choices and need additional information. However, based on the choices provided, the closest answer would be c) A gain of $18.00 is realized assuming we sold the cheaper item and therefore maximized our profit.
It is important to note that inventory valuation methods such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out) can influence which cost is considered when an item is sold, but without that information, an exact answer cannot be given.