Exercise 2 An internal audit of Winslow International Inc discovered that its 2019 and 2020 ending inventory were overstated by $200,000 and $500,000, respectively. Calculate the impact of the error on 2020 cost of goods sold and pre-tax income. If the tax rate is 25%, what is the impact on net income of this error? ACCT 3353 Module 7 Tutorial Exercise Exercise 1 Adele Inc. began 2020 with the following inventory layers 10,000 units at $15 $150,000 15,000 units at $20 300,000 Total beginning inventory $450,000 During 2020, 30,000 units were purchased for $25 per unit 2020 sales totaled 40,000 units Leaving 15,000 units in ending inventory Required: Calculate COGS for 2020 Determine the amount of before-tax LIFO liquidation profit that the company must report in a disclosure note to it 2020 financial statements. Assume a 40% tax rate. How much would the LIFO liquidation profit be after tax? If the company decided to purchase an additional 10,000 units at $25 per unit at the end of the year, how much income tax currently payable would be saved