单选题 Given the following data during periods of rising prices and stable or increasing inventory quantities : LIFO Inventory = $ 80000 FIFO Inventory = $ 90000 Retained Earnings = $125000 When adjusting the balance sheet from (LIFO) to (FIFO), approximately what is the percent-age change in retained earnings?

A、

A. 8.00%.
B、

B. -12.50%.
C、

C. 12.50%.

【正确答案】 A

【答案解析】The difference between the two inventory methods results in a cost of goods sold of $10000 less using FIFO since the cost of the inventory sold is cheaper than using LIFO during rising prices. The percentage change in retained earnings = (10000/125000) × 100 = 8.00%.