Teal,Inc.,used the lower of cost or market to value inventory in 2012.The ending inventory at cost was $400,000 and the ending inventory at market was $385,000.In 2013,Teal changed to the LIFO method.The company's beginning LIFO inventory is $400,000.

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The question provides the necessary information to determine that Teal changed its inventory valuation method from lower of cost or market to LIFO in 2013 and also provides the beginning LIFO inventory amount for that year.

Teal,Inc,Used the Lower of Cost or Market to Value Inventory