Comparison of Inventory Methods (Alternates are 7-67 and 7-69.) Contractor Supply Company is a wholesaler for commercial builders. The company uses a periodic inventory system. The data concerning Kemtone cooktops for the year 20X8 follow: Purchases Sold December 31, 20X7 Balance 110 $50 $5,500 February 10, 20x8 80 @ $60 $4,800 April 14 60 May 9 120 $70 $8,400 July 14 120 October 21 100 $80 $ 8,000 November 12 80 Total 300 $21,200 260 December 31, 20X8 150 @ ? The sales during 20X8 were made at the following selling prices: 60 @ $ 90= 120 @ 100 = 80 @ 110- 260 $5,400 12,000 8,800 $26,200 1. Prepare a comparative statement of gross profit for the year ended December 31, 20X8, using FIFO, LIFO, and weighted-average inventory methods. 2. By how much would income taxes differ if Contractor Supply Company had used LIFO instead of FIFO for Kemtone cooktops? Assume a 40% income tax rate.