ABC Company adopts the LIFO method for inventory valuation. Reflecting on the fiscal year ending December 31, 2023, they commenced with an inventory of 800 units valued at $15 each. Subsequent purchases transpired on February 1 (1,500 units at $17 each) and June 1 (2,000 units at $19 each). They sold a total of 3,000 units during the year, with an ending inventory of 1,300 units.

• Compute the cost of goods sold (COGS) using the LIFO method for ABC Company.
• Ascertain the value of the ending inventory using the LIFO method.
• Discuss how the LIFO method impacts ABC Company’s income tax liability.
• Analyze the financial statement implications of using LIFO compared to FIFO for ABC Company.