66. In 2015, Gail changed from the lower of cost or market FIFO method to the LIFO inventory method . The ending inventory for 2014 was computed as follows: FIFO Cost A $26,000 B 52,000 C 30,000 Replacement Cost A $15,000 B 55,000 C 7,000 Lower of cost or Market A $15,000 B 52,000 c 7,000 The total of Lower of cost or market is $74,000 Item C was damaged goods, and the replacement cost used was actually the estimated selling price of the goods. The actual cost to replace item C was $32,000.

A). What is the correct beginning inventory for 2015 under the LIFO method?

B). What immediate tax consequences (if any) will result from the witch to LIFO?

You will not use lower of cost or market in part A. It does come into play in part B, but not in A.