AAA Hardware uses the LIFO method to report its inventory. Inventory at the beginning of the year consisted of 20,000 units of the companys one product. These units cost $16 each. During the year, 70,000 units were purchased at a cost of $19 each and 71,500 units were sold. Near the end of the fiscal year, management is considering the purchase of an additional 7,500 units at $19. Required: 1. What would be the effect of this purchase on income before income taxes? 2. What would be the effect of this purchase on income before income taxes using FIFO?