Question - Opera Corp. uses the dollar-value LIFO method of computing its inventory cost. Data for the past three years is as follows: Dec 31, 20X0, Inventory at end-of-year prices = $65,000 (price index = 1.00); Dec 31, 20X1, Inventory at end-of-year prices = $126,000 (price index = 1.05); Dec 31, 20X2, Inventory at end-of-year prices = $135,000 (price index = 1.10). What is the 20X0 inventory balance using dollar-value LIFO?
$65,000
$61,904
$122,727
$135,000