LIFO BALANCE SHEET AT 12/31/2024:
Assets
Cash and Cash
Equivalents
$1,000
Accounts Receivable, Net $1,000
Inventory
$8,000
PPE, Net
$20,000
TOTAL ASSETS
$30,000
Liabilities & Owners Equity
Accounts Payable
$3,000
Notes Payable
$4,000
Common Stock
$13,000
Retained Earnings
$10,000
TOTAL LIAB. & OWNERS
$30,000
EQUITY
LIFO INCOME STATEMENT FOR THE YEAR ENDING 12/31/2024:
Sales Revenue
$60,000
CGS
($40,000)
Gross Margin
$20,000
Other Gains/(Losses)
($11,000)
Pre-Tax Income
$9,000
Tax Expense (35%)
($3,150)
Net Income
$5,850
From its inception, Ella Corp. used LIFO to value its inventory. The LIFO reserve at 1/1/2024 is $500 and
the LIFO reserve at 12/31/2024 is $1,200. You may assume that taxes are always 35% and all taxes are paid
in cach
If, from its inception, Ella Corp. has used FIFO to value its inventory instead of LIFO, what would Ella
Corp. reports as 12/31/2024 Total Liabilities and Owners' Equity?
$30,780
$31,780
$30,500
$30,000