Use the Following Information for 121 and 122

Multiple Choice

Use the following information for 121 and 122
RF Company had January 1 inventory of $200,000 when it adopted dollar-value LIFO. During the year, purchases were $1,200,000 and sales were $2,000,000. December 31 inventory at year-end prices was $286,720, and the price index was 112.
-What is RF Company's gross profit?

A) $856,000.
B) $862,720.
C) $886,920.
D) $1,737,280.