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7. Victor Manufacturing Co. switched from FIFO to LIFO on January 1, 2016 for external reporting and income tax purposes. On that date, the FIFO

7. Victor Manufacturing Co. switched from FIFO to LIFO on January 1, 2016 for external reporting and income tax purposes. On that date, the FIFO inventory equaled $360,000. The ensuing three-year period resulted in the following:

Date

Inventory

Year-End Costs

Cost

Index

December 31, 2016

$438,000

1.05

December 31, 2017

460,000

1.15

December 31, 2018

520,000

1.25

The ending inventory at December 31, 2018, using the Dollar-value LIFO method would be

a.

$422,000

b.

$402,000

c.

$426,000

d.

$420,400

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