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

question 24

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, 2012, using the dollar-value LIFO method would be

• A)$422, 000
• B)$402, 000
• C)$426, 000
• D)$420, 400

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Definitions:

Spruce Budworm

A destructive North American caterpillar that infests conifer forests, notably spruce and fir trees, causing significant damage to these ecosystems during outbreak periods.

Pheromones

Substances created and emitted by an animal into its surroundings that influence the behavior or bodily functions of other members of the same species.

Synthesized

Created or formed by combining simpler substances or elements through a chemical process, leading to a new compound or product.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders.