The Olson Company adopted the dollar-value LIFO method for inventory valuation at the beginning of 2006. The following information about the inventory at the end of each year is available from the company records:

Required
1. Calculate the dollar-value LIFO inventory at the end of each year.
2. Prepare the appropriate disclosures for the year 2009 annual report if the company uses current cost internally and LIFO for financial reporting. Why would the company use current costinternally?

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Year 2005 2006 2007 2008 2009 Current Costs $50,000 60,000 70,000 73,000 78,000 Index 100 108 115 125 135