CMN Inc Uses LIFO and Has Experienced Increasing Costs Since Its

question 16

Multiple Choice

CMN Inc. uses LIFO and has experienced increasing costs since its founding. CMN disclosed that the LIFO reserve (also known as the LIFO allowance) at the end of 2018 was $3 million. The balance sheet showed ending inventory of $17 million at the end of 2018. What would the ending inventory have been if CMN had always used FIFO?

• A) $20 million.
• B) $17 million.
• C) $14 million.
• D) None of these answer choices are correct.

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