Question
Sheridan Company adopted the dollar-value LIFO method on January 1, 2020 (using internal price indexes and multiple pools). The following data are available for inventory
Sheridan Company adopted the dollar-value LIFO method on January 1, 2020 (using internal price indexes and multiple pools). The following data are available for inventory pool A for the 2 years following adoption of LIFO.
| Inventory | At Base-Year Cost | At Current-Year Cost | ||
|---|---|---|---|---|
| 1/1/20 | $219,400 | $219,400 | ||
| 12/31/20 | 227,300 | 272,760 | ||
| 12/31/21 | 259,700 | 319,431 |
Computing an internal price index and using the dollar-value LIFO method, at what amount should the inventory be reported at December 31, 2021?
| December 31, 2021 | ||
|---|---|---|
| Price Index |
| |
| Dollar-value LIFO inventory | $ |
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Alternative Minimum Tax For Individuals IRS Audit Technique Guide ATG
Authors: Internal Revenue Service
1st Edition
1304131556, 978-1304131553
