On December 31, 2011, Lillis Company adopted the dollar-value LIFO inventory method. The inventory on that date using the dollar-value LIFO inventory method was determined to be $300,000. Inventory data for succeeding years follow:

hypen means separated category

-Year end- inventory -cost index

2012- 363000- 1.1

2013- 420000- 1.2

2014 -442000 - 1.3

Additional information shows that purchases of inventory in 2014 are $950,000 and sales are $2,000,000.

Calculate the gross profit that Lillis will report on its December 31, 2014 income statement.

-$1,038,000

-$962,000

-None of other answer choices is correct

-$1,050,000