Effect of LIFO on financial statements over several periods. Harmon Corporation commenced operations on January 2. Year 8. It uses a LIFO cost flow assumption. Its purchases and sales for the first three years of operations appear below:

Purch ases Sales Units Unit Cost Units Unit Price 83,000 $20.00 64,000 $32.00 92,000 $25.00 101,000 $40.00 120,000 $30.00 110,000

$48.00 Year 8 Year 9 Year 10

a. Compute the amount of ending inventory for each of the three years.

b. Compute the amount of income for each of the three years.