On January 1, 2018, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $101,700. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below:

Year-endEnding inventory at

year-end costsCost Index2018$131,3551.052019150,4801.102020160,7401.20

In determining the inventory balance should Badger report in its 12/31/2019 balance sheet:

Multiple Choice

• An additional layer of $24,870 is added to the 1/1/2019 balance.
• An additional layer of $23,870 is added to the 1/1/2019 balance.
• Incorrect
• An additional layer of $12,870 is added to the 1/1/2019 balance.
• None of these answer choices are correct.