Web World Began Using Dollar-Value LIFO for Costing Its Inventory

Multiple Choice

Web World began using dollar-value LIFO for costing its inventory last year. The base year layer consists of $400,000. Assuming the current inventory at end of year prices equals $552,000 and the index for the current year is 1.10, what is the ending inventory using dollar-value LIFO?

A) $552,000.
B) $512,000.
C) $501,818.
D) $607,200.