Carlson Auto Dealers Inc. sells a handmade automobile as its only product. Each automobile is identical; however, they can be distinguished by their unique ID number. At the beginning of 2021, Carlson had three cars in inventory, as follows:

Car ID	Cost
203	$	81,000
207		81,000
210		84,000

During 2021, each of the three autos sold for $111,000. Additional purchases (listed in chronological order) and sales for the year were as follows:

Car ID	Cost			Selling Price
211	$	81,000		$	111,000
212		81,000			114,000
213		82,500		not sold
214		84,000			117,000
215		87,000			121,500
216		85,500		not sold
217		90,000			126,000
218		87,300			127,500
219		93,000		not sold

Required: 1. Calculate 2021 ending inventory and cost of goods sold assuming the company uses the specific identification inventory method.

	Specific Identification
Ending Inventory
Cost of goods sold

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Taylor Corporation reports inventory and cost of goods sold based on calculations from a LIFO periodic inventory system. The companys records under this system reveal the following inventory layers at the beginning of 2021 (listed in chronological order of acquisition):

16,500 units @ $10	$	165,000
21,500 units @ $15		322,500
Beginning inventory	$	487,500

During 2021, 43,000 units were purchased for $20 per unit. Due to unexpected demand for the company's product, 2021 sales totaled 53,000 units at various prices, leaving 28,000 units in ending inventory. Required: 1. Calculate the amount to report for cost of goods sold for 2021. 2. Determine the amount of LIFO liquidation profit that the company must report in a disclosure note to its 2021 financial statements. Assume an income tax rate of 25%. 3. If the company decided to purchase an additional 10,000 units at $20 per unit at the end of the year, how much income tax currently payable would be saved?

1. Cost of Goods Sold
2.LIFO liquidation profit
3.Income tax payable