1/ On January 1, 2018, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $100,300. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below:

Year-end	Ending inventory at year-end costs				Cost Index
2018	$	126,945				1.05
2019		144,320				1.10
2020		154,860				1.20

What inventory balance would Badger report on its 12/31/2020 balance sheet?

Multiple Choice

• $129,050.

• $130,895.

• $154,860.

• None of these answer choices are correct.

2/ Nu Company reported the following pretax data for its first year of operations.

Net sales		2,960
Cost of goods available for sale		2,450
Operating expenses		820
Effective tax rate		40	%
Ending inventories:
If LIFO is elected		830
If FIFO is elected		1,220

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

Multiple Choice

• $546.

• $910.

• $520.

• $312.

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