FIO cost How (b) Perpetual system, (c) Periodic system, LIFO cost flow (D Perpetual system, counting department to describe the effect upon the company's financial position and its income statements of accounting for inventories on the LIFO rather than the FIRO basis during 2014 and 2015. The accounting department is to assume that the change to LIFO would have been effective on January 1, 2014, and that the initial LIFO base would have been the inventory value on December 31, 2013. Presented below are the com- 5 Ps-7 Financial Statement Effects of FIFO and LIFO) The management of Tritt Company has asked its ac- pany's financial statements and other data for the years 2014 and 2015 when the FIRO method was employed. Financial Position as of 12/31/13 $ 90,000 12/31/14 12/31/15 $130,000 $154,000 Cash Accounts recelvable Inventory Other assets 100,000 140,000 170,000 80,000 170,000 178000 $540,000 $650,000 120,000 200,000 160,000 $450,000 Total assets s 60,000 80,000 110,000 $ 40,000 70,000 80,000 Other liabilities Common stock Retained earnings 200,000 140,000 $450,000 200,000 200,000 260,000 $540,000 $650,000 Total liabilities and equity Income for Years Ended 12/31/15 $900,000 $1,350,000 756,000 205,000 304,000 710,000 1,060,000 290,000 116,000 $114,000 174,000 123/14 1231/15 Sales revenue Less: Cost of goods sold 505,000 Other expenses Income before income taxes Income taxes (40%) 190,000 76,000 Net income Other data: 1. Inventory on hanid at December 31, 2013, consisted of 40,000 units valued at $3.00 each. 2. Sales (all units sold at the same price in a given year): 2014-150,000 units@ $6.00 each 2015-180,000 units@$7.50 each 3. Purchases (all units purchased at the same price in given year): 2014-150,000 units $3.50 each 2015-180,000 units $4.40 each Income taxes at the effective rate of 40% are paid on December 31 each year. Instructions Name the account(s) presented in the finaricial statements that would have different amounts for 2015 if LIFO rather than FIFO had been used, and state the new amount for each account that is named. Show computations