$3$

$6$

points

Supped

Reierence:

Jaffo Compony prepared its annual financial statements dated December $31$ of the current year. The company applies the FIFO inventory costing method; however, the company neglected to apply lower of cost or net realizable value to the ending inventory. The preliminary current year income statement follows:

Ssles revenue

Cost of goods sold Beginning imventory Punchases

Goods availsble for ssle

Ending imventory $($FIFO cost$)$ cost of goods sold

Gross profit

Opersting expenses

Pretsx incone

Incone tax expense $(30$K$)$

llet incone

$$320,000$

$\backslash$table$[[$$$34,600$