On January 1, 2018, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $101,200. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below:

Year-end	Ending inventory at year-end costs				Cost Index
2018	$	129,780				1.05
2019		148,280				1.10
2020		158,640				1.20

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

Multiple Choice

• An additional layer of $24,320 is added to the 1/1/2019 balance.

  Incorrect

• An additional layer of $23,320 is added to the 1/1/2019 balance.

• An additional layer of $12,320 is added to the 1/1/2019 balance.

• None of these answer choices are correct.