Black Corporation uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2025 was $280,000. The balance in the same account at the end of 2026 is $420,000. Black's Cost of Goods Sold account has a balance of $2,100,000 from sales transactions recorded during 2026. a) Prepare the adjusting entry for the LIFO reserve. b) What amount should Black report as Cost of Goods Sold in the 2026 income statement? Black Corporation uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2025 was $280,000. The balance in the same account at the end of 2026 is $420,000. Black's Cost of Goods Sold account has a balance of $2,100,000 from sales transactions recorded during 2026. a) Prepare the adjusting entry for the LIFO reserve. b) What amount should Black report as Cost of Goods Sold in the 2026 income statement