On January 1, 2019, Ferret, Inc., adopted the dollar-value LIFO method. The inventory cost on this date was 100,000. The 2019 ending inventory, valued at year-end costs, was 126,000. The relative cost index for this inventory in 2019 was 1.05. Suppose that Ferret's 2020 ending inventory, valued at year-end costs, was 143,000 and that the relative cost index for this inventory in 2020 was 1.10. In determining the inventory balance, which should Ferret report in its 12/31/20 balance sheet?

A - An additional layer of 22,000 is added to the 1/1/20 balance.

B - An additional layer of 11,000 is added to the 1/1/20 balance.

C - No additional layers are needed for the 1/1/20 balance.

D - An additional layer of 23,000 is added to the 1/1/20 balance.