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

question 27

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

---

Definitions:

Party Politics

The competition between political parties for power and control within a governmental setup, influencing policy-making and the political landscape.

Newspaper

A printed or digital publication that provides news, information, and commentary on current events on a regular or semi-regular basis.

Town Criers

Historical figures who made public announcements in the streets, often employed by the town or city authorities before the advent of mass communications.

Mississippi River

The second-longest river in North America, flowing southward for 2,320 miles from Minnesota to the Gulf of Mexico, serving as a major transportation and trade route.