14. It's a Wonderful LIFO! reports the following: Ending Inventory in base-year $on price index 1.03 1.05 1.1 1.15 12/31/16 Layer 1 $15,000 Layer 2 $20,000 Layer 3 $17,000 Layer 4 $7,000 2017 purchases are reported at $150,000 and sales are reported at $200,000, while 2017 ending inventory at base year prices is 62,000. The price index for 2017 is 1.17. It's a Wonderful LIFO's Gross Profit will be: A) S146,490 B) $63,200 C) $53,510 D) S66,710 E) None of the above. The answer is 15. Which of the following applies to LIFO liquidation? A) LIFO liquidation involves overestimating the amount of inventory needed B) LIFO liquidation will be more severe under dollar-value LIFO (than individual product LIFO) C) LIFO liquidation will cause a decrease in earnings per share D) LIFO liquidation will cause an increase in tax expense E) more than one of the above 16. Which inventory costing method most closely approximates current cost for each of the following a. b. C. d LIFO Ending Inventory FIFO FIFO LIFO Cost of Goods Sold FIFO LIFO FIFO LIFO