56. LO.6 Amber Company has used the dollar-value LIFO technique for the past three years. The company has only one inventory pool. Its beginning inventory for the current year was computed as follows:

Base Period Cost LIFO Index LIFO Layer Base period inventory $1,200,000 1.00 $1,200,000 Year 1 layer 300,000 1.04 312,000 Year 2 layer 400,000 1.06 424,000

$1,900,000 $1,936,000

a. The current-year ending inventory (end of year 3) at current prices is $2,124,000, and the LIFO index is 1.06. Determine the company’s LIFO inventory as of the end of the current year.

b. Assume that the current-year ending inventory at current prices is $1,850,000. What is the end-of-the-current-year LIFO inventory value?