An analyst is evaluating the balance sheet of a US company that uses last in, first out (LIFO) accounting for inventory. Th e analyst collects the following data:
![](https://test.transtutors.com/qimg/ffa2dd25-cb20-481c-bc38-a77b5a2b5e57.png)
After adjusting the amounts to convert to the first in, first out (FIFO) method, inventory at 31 December 2006 would be closest to:
A. $600,000.
B. $620,000.
C. $670,000.