Use the Following Information for Questions
Baker Company, Which

Use the following information for questions
Baker Company, which uses the retail LIFO method to determine inventory cost, has provided the following information for 2007: $\begin{array}{lrr}&\text { Cost }& \text { Retail }\\ \hline\text { Inventory, } 1 / 1 / 07 & \$ 94,000 & \$ 140,000 \\\text { Net purchases } & 378,000 & 562,000 \\\text { Net markups } & & 68,000 \\\text { Net markdowns } & & 30,000 \\\text { Net sales } & & 530,000\end{array}$
-Assuming stable prices (no change in the price index during 2007) , what is the cost of Baker's inventory at December 31, 2007?

A) $128,100.
B) $138,100.
C) $136,000.
D) $132,300.