1-Sandhill Corp. uses dollar-value LIFO method of computing its inventory cost. Data for the past three years is as follows:

Year ended December 31		Inventory at End-of-year Prices		Price Index
2024			$ 653000			1.00
2025			1261000			1.05
2026			1351250			1.10

What is the 2026 inventory balance using dollar-value LIFO? (Round intermediate calculations and final answer to 0 decimal places, e.g. 10,000.)

Select answer from the options below

$1286000

$1258552

$1351250

$1228409

2-On June 15, 2025, Wynne Corporation accepted delivery of merchandise which it purchased on account. As of June 30, Wynne had not recorded the transaction and did not include the merchandise in its physical count of inventory at the end of the accounting period. The effect of this on its balance sheet for June 30, 2025 would be

Select answer from the options below

assets and liabilities were understated but stockholders' equity was not affected. stockholders' equity was the only item affected by the omission.

assets and stockholders' equity were overstated but liabilities were not affected.

assets, liabilities, and stockholders' equity were understated.