On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $100,200. 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

2021 $ 126,630 1.05

2022 143,880 1.10

2023 154,440 1.20

In determining the inventory balance for Badger to report in its 12/31/2022 balance sheet:

Multiple Choice

A. An additional layer of $11,220 is added to the 12/31/2021 balance.

B. An additional layer of $23,220 is added to the 12/31/2021 balance.

C. An additional layer of $22,220 is added to the 12/31/2021 balance.

D. None of these is correct.