For Control Furniture Co A B C D A)Option a
B)Option B
C)Option C
D)Option D

For Control Furniture Co., To restate Year 2006 LIFO inventories to a FIFO basis, we use the following analytical entry:
$\begin{array}{ll}\text { LIFO reserve in Year 2006 } & \$ 91 \text { million } \\\text { LIFO reserve in Year 2005 } & \$ 82 \text { million }\\\text { Tax Rate is } 35 \% \text {. }\end{array}$

A.
$\begin{array} { l l l l } & \text { Inventories } & 91 & \\& \text { Deferred Tax Payable } & & 31.85 \\& \text { Retained Earnings } & & 59.15 \\\end{array}$

B.
$\begin{array} { l l l l } & \text { Inventories } & 91 & \\& \text { Deferred Tax Payable } & & 35.65 \\& \text { Retained Earnings } & & 55.35 \\\end{array}$

C.
$\begin{array} { l l l l } & \text { Inventories } & 91 & \\& \text { Deferred Tax Payable } & & 38.96 \\& \text { Retained Earnings } & & 52.04 \\\end{array}$

D.
$\begin{array} { l l l l } & \text { Inventories } & 91 & \\& \text { Deferred Tax Payable } & & 32.85 \\& \text { Retained Earnings } & & 58.15\end{array}$

A) Option A
B) Option B
C) Option C
D) Option D