Savage Company Adopted the Dollar-Value LIFO Method in 2014

question 92

Multiple Choice

Savage Company adopted the dollar-value LIFO method in 2014.At December 31,2014,ending inventory was $100,000,with a price index of 1.00,using dollar-value LIFO.At December 31,2015,the ending inventory using FIFO is $120,000 and the price index is 1.15.What is the LIFO Reserve on December 31,2015?

• A)$4,348
• B)$15,000
• C)$15,652
• D)$20,000

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