The Sanlex Company started the year with no inventories on hand. It manufactured two batches of inventory, which were identical except that the variable costs of producing the first batch were \(\$ 120\) and the variable costs of producing the second batch were \(\$ 200\) because of rising prices. By the end of the year, Sanlex Company had sold three-fourths of the first batch for \(\$ 300\) and none of the second batch. The ending inventory had a market value of \(\$ 305\). Total fixed manufacturing costs for the year were \(\$ 160\). Under the absorption costing procedure, \(\$ 100\) of fixed manufacturing costs allocated to units produced remained in inventory at the close of the year. Selling and administrative expenses for the year were \(\$ 30\).

Prepare a statement of pretax income for the Sanlex Company for the year under each of the following sets of assumptions.

a FIFO, acquisition-cost basis.

b LIFO, acquisition-cost basis.

c FIFO, lower-of-cost-or-market basis.