Answer:
B. $83,000
Explanation:
Inventory value at adoption = $50,000
Increase in inventory using base year price = $30,000
Current year Price increase = 10%
Increase price = $30,000 + ( $30,000 x 10% )
Increased price inventory = $30,000 + $3,000
Increased price inventory = $33,000
Amount of Inventory reported on balance = Inventory value at adoption + Increase price Inventory
Amount of Inventory to be reported on balance = $50,000 + $33,000
Amount of Inventory to be reported on balance = $83,000
