Behrend Company reported the following pretax data for its first year of operations.

Net sales $10,000

Cost of goods available for sale $8,000

Operating expenses $1,000

Effective tax rate 40 %

Ending inventory:

If FIFO is elected $2,000

If LIFO is elected $1,500

What is Behrends gross profit if it elects LIFO?

$2,500.

$4,000.

$3,000.

$3,500.

On December 31, 2011, Behrend Corp. adopted the dollar value LIFO inventory method. The base inventory layer established at that time was $400,000 with a cost index of 1.00. Inventory data for 2012 through 2014 is as follows:

Inventory at
Year Ended	Year-end Cost	Cost Index
12/31/2012	413,100	1.02
12/31/2013	422,100	1.05
12/31/2014	440,640	1.08

Inventory should appear in the 12/31/2012 balance sheet at:

$405,100

$405,000

$413,100

none of the above

On December 31, 2011, Behrend Corp. adopted the dollar value LIFO inventory method. The base inventory layer established at that time was $400,000 with a cost index of 1.00. Inventory data for 2012 through 2014 is as follows:

Inventory at
Year Ended	Year-end Cost	Cost Index
12/31/2012	413,100	1.02
12/31/2013	422,100	1.05
12/31/2014	440,640	1.08

Inventory should appear in the 12/31/2014 balance sheet at:

$408,000

$408,340

$408,520

none of the above

On December 31, 2011, Behrend Corp. adopted the dollar value LIFO inventory method. The base inventory layer established at that time was $400,000 with a cost index of 1.00. Inventory data for 2012 through 2014 is as follows:

Inventory at
Year Ended	Year-end Cost	Cost Index
12/31/2012	413,100	1.02
12/31/2013	422,100	1.05
12/31/2014	440,640	1.08

Inventory should appear in the 12/31/2013 balance sheet at:

$402,000

$402,040

$422,100

none of the above