Vaughn, Inc. uses the dollar-value LIFO method of computing its inventory. Data for the past 3 years follow. Year Ended December 31 Inventory at Current-Year Cost Price Index 2019 $20,000 100 2020 22,464 108 2021 26,334 114 Compute the value of the 2020 and 2021 inventories using the dollar-value LIFO method.

Year Ended December 31            Inventory at Current-Year Cost     Price Index

2019                                                        $20,000                                     100

2020                                                       $22,464                                      108

2021                                                        $26,334                                       114

Inventory at base year prices:

2020 = $20,800

2021 = $23,100

Change from prior yer:

2020 = $800

2021 = $2,300

Dollar value:

2020 = $20,000 + ($800 x 1.08) = $20,864

2021 = $20,864 + (2,300 x 1.14) = $23,486

answera public company has access to more capital;