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

For Control Furniture Co.,
LIFO Reserve in Year 2006 $91 million
LIFO Reserve in Year 2005$82 million
Tax Rate is 35%.
To restate Year 2006 LIFO inventories to a FIFO basis, we use the following analytical entry: $$\begin{array} { | l | l | r | r | } \hline \text { A) } & \text { Inventories } & 91 & \\\hline & \text { Deferred Tax Payable } & & 31.85 \\\hline & \text { Retained Earnings } & & 59.15 \\\hline \text { B) } & \text { Inventories } & 91 & \\\hline & \text { Deferred Tax Payable } & & 35.65 \\\hline & \text { Retained Earnings } & & 55.35 \\\hline \text { C) } & \text { Inventories } & 91 & \\\hline & \text { Deferred Tax Payable } & & 38.96 \\\hline & \text { Retained Earnings } & & 52.04 \\\hline \text { D) } & \text { Inventories } & 91 & \\\hline & \text { Deferred Tax Payable } & & 32.85 \\\hline & \text { Retained Earnings } & & 58.15 \\\hline\end{array}$$

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