Sugarland Company reported $255,000 as its ending inventory and $1,322,000 as cost of goods sold for Year 2 using the LIFO method. The company’s LIFO reserve totaled $43,100 and $36,250 for Year 2 and Year 1, respectively. Sales amounted to $2,250,000 and other operating costs totaled $780,000 for Year 2. Super Toys Company has a 34% effective income tax rate.
A. using FIFO, how much is its cost of goods sold?
B. How much did they save in income taxes as a result of using LIFO to value its inventories?
C. how do I make an income statement for Year 2 for the Super Toys Company assuming FIFO is used.
