Dollar-Value LIFO Inventory: On January 1, year 1, Silver Industries Inc. adopted the dollar-value LIFO method of determining inventory costs for financial and income tax reporting. The following information relates to this change:

Silver has continued to use the FIFO method, which approximates current costs, for internal reporting purposes. Silver's FIFO inventories at December 31, year 1, year 2, and year 3 were $100,000, $137,500, and $195,000, respectively.

The FIFO inventory amounts are converted to dollar-value LIFO amounts using a single inventory pool and cost indices developed using the link-chain method. Silver estimated that the current year cost change indices, which measure year-to-year cost changes, were 1.25 for year 2 and 1.20 for year 3.

Complete the following schedule by double-clicking in the associated shaded cell and entering the appropriate value. Enter all amounts as positive values. Enter index values to two decimal places.

Year	FIFO inventory	Current year cost change index	Link-chain cost index	Inventory at base year costs
1	$100,000	1.00	1.00	$100,000
2	137,500	1.25	[1____]	[2____]
3	195,000	1.20	[3____]	[4____]
Year	LIFO inventory layers at base year costs	Link-chain cost index	Year 2 dollar-value LIFO inventory	Year 3 dollar-value LIFO inventory
1	$100,000	1.00	$100,000	$100,000
2	[5____]	[6____]	[7____]	[8____]
3	[9____]	[10___]		[11___]
	[12___]		[13___]	[14___]