1) Nu Company reported the following pretax data for its first year of operations.

Net sales		2,800
Cost of goods available for sale		2,500
Operating expenses		880
Effective tax rate		25	%
Ending inventories:
If LIFO is elected		820
If FIFO is elected		1,060

What is Nu's net income if it elects FIFO?

A) $480.

B) $360.

C) $1,360.

D) $180.

2) Bond Company adopted the dollar-value LIFO inventory method on January 1, 2021. 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

Year	At Year-End	At Base Year Cost	Cost Index
1/1/2021	$ 300,000	$ 300,000	1.00
12/31/2021	345,600	320,000	1.08
12/31/2022	420,000	350,000	1.20

Under the dollar-value LIFO method, the inventory at December 31, 2022, should be

A) $357,600.

B) $350,000.

C) $351,600.

D) None of these answer choices are correct.