Exhibit 7-5 Sullivan Produce Co. Switched from FIFO to LIFO on January

question 53

Multiple Choice

Exhibit 7-5
Sullivan Produce Co. switched from FIFO to LIFO on January 1, 2015, 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:

-Refer to Exhibit 7-5. The ending inventory at December 31, 2017, using the dollar-value LIFO method would be

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

---

Definitions:

Naval Power

The strength and capability of a country's navy, affecting its ability to control sea trade routes and exercise military influence.

White American Population

A demographic group in the United States characterized by people of European, Middle Eastern, and North African descent as defined by the U.S. Census Bureau.

Revolutionaries

People who promote or participate in a complete or dramatic change, especially in political systems or governments.

British Forces

Military units representing the United Kingdom, including the army, navy, and air force.