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Bond Company adopted the dollar-value LIFO inventory method on January 1, 2016. In applying the LIFO method, Bond uses internal cost indexes and the multiple-pools approach.
The following data were available for Inventory Pool No. 3 for the two years following the adoption of LIFO:
Ending Inventory
At Current
At Base
Year
Cost
Year Cost
Cost Index
1/1/16
$307,000
1.00
12/31/16
342,935
320,500
1.07
12/31/17
442,680
357,000
1.24
Under the dollar-value LIFO method the Inventory at December 31. 2017 should be
$366,705.
$357,000.
$357,945.
None of these answer choices is correct.
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