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On January 1, 2024, a company adopted the dollar-value LIFO method. The inventory cost on this date was $101,300. The ending inventory, valued at year-end

On January 1, 2024, a company adopted the dollar-value LIFO method. The inventory cost on this date was $101,300. 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
2024 $ 130,095 1.05
2025 148,720 1.10
2026 159,060 1.20

In determining the inventory balance for the company to report in its 12/31/2025 balance sheet:

Multiple Choice

An additional layer of $12,430 is added to the 12/31/2024 balance.

An additional layer of $24,430 is added to the 12/31/2024 balance.

An additional layer of $23,430 is added to the 12/31/2024 balance.

None of the other answer choices are correct.

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