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a. Ponce Company adopted the dollar-value LIFO inventory method on January 1, 2021. In applying the LIFO method, Ponce Company uses internal cost indexes and

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Ponce Company adopted the dollar-value LIFO inventory method on January 1, 2021. In applying the LIFO method, Ponce Company 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 Current Cost

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:

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