Exhibit 8-5 Sully Provisions Co - Refer to Exhibit 8-5

Multiple Choice

Exhibit 8-5 Sully Provisions Co.switched from FIFO to LIFO on January 1, 2010, for external reporting and income tax purposes, while retaining FIFO for internal reports.On that date, the FIFO inventory equaled $360, 000.The ensuing three-year period resulted in the following:
$\begin{array}{lll}&\text { Inventory }&\text { Cost }\\\text {Date}&\text {Year-End Costs}&\text {Index}\\\text { December } 31,2010 & \$ 438,000 & 1.05 \\\text { December 31, } 2011 & 460,000 & 1.15 \\\text { December 31. } 2012 & 520,000 & 1.25\end{array}$

- Refer to Exhibit 8-5.The ending inventory at December 31, 2011, using the dollar-value LIFO method would be

A) $400, 000
B) $402, 000
C) $406, 000
D) $424, 000