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On January 1, 2008, ECT Co

question 43

Essay

On January 1, 2008, ECT Co. adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $600 million. The 2008 and 2009 ending inventory valued at year-end costs were $702 million and $840 million, respectively. The appropriate cost indexes are 1.08 for 2008 and 1.20 for 2009.
Required:
Calculate the inventory balance that ECT Co. would report on its year-end balance sheets for 2008 and 2009, using the dollar-value LIFO method.


Definitions:

Swann v. Charlotte-Mecklenburg

A landmark Supreme Court decision in 1971 that upheld busing as a legitimate means to achieve desegregation in public schools.

De Facto Segregation

Racial segregation occurring without the sanction of law, instead stemming from social, economic, and institutional factors.

Busing

The transportation of students to schools outside their local school districts as a means of achieving racial integration in public schools.

Domestic Policy

Governmental policies addressing the internal matters of a country, such as education, healthcare, and infrastructure.

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