Company XYZ switched from LIFO inventory to FIFO during the year

Accounting Sep 22, 2020

Company XYZ switched from LIFO inventory to FIFO during the year. The pretax income data under each method is the following:

· FIFO: $210,000 in 2020; $135,000 in 2019; $142,500 in 2018

· LIFO: $189,000 in 2020; $111,500 in 2019; $138,000 in 2018

What net income amount did the company report in 2018? 2020? Assume a tax rate of 30%. Prepare the comparative income statements for the company in 2020.

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