问一道题：NO.PZ201602060100000101

问题如下：

1. If Karp had used FIFO instead of LIFO, the amount of inventory reported as of 31 December 2009 would have been closest to:

选项：

$465 million.

$658 million.

$775 million.

解释：

C is correct.

Karp’s inventory under FIFO equals Karp’s inventory under LIFO plus the LIFO reserve. Therefore, as of 31 December 2009, Karp’s inventory under FIFO equals:

Inventory (FIFO method) = Inventory (LIFO method) + LIFO reserve = $620 million + 155 million = $775 million