On January 1, 2005, Poe Company adopted the dollar-value LIFO inventory method. Poe’s entire inventory constitutes a single pool. Inventory data for 2005 and 2006 are as follows:
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|
Date |
Inventory at current year cost |
Inventory at base year cost |
Relevant price index |
|
1/1/05 |
$150,000 |
$150,000 |
1.00 |
|
12/31/05 |
220,000 |
200,000 |
1.10 |
|
12/31/06 |
276,000 |
230,000 |
1.20 |
Poe’s LIFO inventory value at December 31, 2006, is
- $230,000
- $236,000
- $241,000
- $246,000