On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $100,800. 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	$	128,520				1.05
2022		146,520				1.10
2023		156,960				1.20

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

Multiple Choice

• An additional layer of $11,880 is added to the 12/31/2021 balance.

• An additional layer of $23,880 is added to the 12/31/2021 balance.

• An additional layer of $22,880 is added to the 12/31/2021 balance.

• None of these answer choices are correct.