Savage Company Adopted the Dollar-Value LIFO Method in 2014

question 119

Multiple Choice

Savage Company adopted the dollar-value LIFO method in 2014. At December 31, 2014, ending inventory was $102,000, with a price index of 1.00, using dollar-value LIFO. At December 31, 2015, the ending inventory using FIFO is $131,000 and the price index is 1.20. What is the LIFO Reserve on December 31, 2015? (Round all dollar amounts to the nearest dollar.)

• A) $7,167
• B) $20,400
• C) $21,833
• D) $29,000

---

Definitions:

Negative

Characterized by a lack of positive qualities, often associated with harmful or undesirable effects.

External Locus

The belief that outcomes in one's life are determined by external forces or circumstances beyond personal control.

Positive Attitude

A position resulting from healthy self-esteem, optimism, extraversion, and personal control.

Negative Attitude

The tendency to consistently view situations, people, and outcomes pessimistically or unfavorably.