Christman Co. adopts the simpliﬁed dollar-value LIFO method in 2012. Ending inventory at actual prices in 2012 and 2013 was $100,000 and $160,000, respectively. Assume that the consumer price index was 1.20 and 1.25 in 2012 and 2013. What cost will Christman Co. use as ending inventory for 2013?

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Shapot Inc
's taxable income for the six-month short period is $110,000 ($190,000 - $80,000). Its short- period tax is determined as follows.
Taxable income annualized: $110,000 × 12/6 = $220,000 Tax on annualized income:
$50,000 × 15% =$ 7,500
$25,000 × 25% = 6,250
$25,000 × 34% = 8,500
$120,000 × 39% = 46,800
Total $69,050
Tax for short period: $69,050 × 6/12 = $34,525