Bothell Corp uses FIFO for internal reporting purposes and LIFO for financial and income tax purposes. At the end of 2022, the following information was obtained from the inventory records:

12/31/21 12/31/22

Ending inventory @ FIFO $78,650 $93,250

Ending inventory @ LIFO 68,500 84,350

Required:

A) Prepare the necessary adjusting journal entry assuming that Bothell converts the accounts to LIFO @ the end of 2022

B) Indicate how Bothell would disclose the inventory value on its comparative balance sheets prepared @ the end of 2022