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Sheridan Company had January 1 inventory of $301000 when it adopted dollar-value LIFO. During the year, purchases were $1820000 and sales were $2930000. December 31 inventory at year-end prices was $388500, and the price index was 111.
Question 1: What is Sheridan Company's gross profit?
Option 1: $1164390.
Option 2: $2574610.
Option 3: $1197500.
Option 4: $1265000.
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