fx Turlock Distributing (TD) also began business on Janu A B C D E Turlock Distributing (TD) also began business on January 1, 2014. Business has been good although the purchase prices have been rising. To maximize reported income, TD choose the FIFO inventory method to report their results for 2014 and 2015. To minimize taxes TD has chosen to switch to the LIFO method for reporting the 2016 results. The tax rate is 40% Turlock Distributing Cost of Goods Sold, Income Statement, and Retained Eamings Information For years ending 12/31 2014 2016 210,000 960,000 FIFO 2014 2015 - 200,000 750,000 $50,000 750,000 1,050,000 200,000 250,000 550,000 800,000 Beginning invento 3 Purchases 4 CGA Ending inventory 6 CGS 750,000 LIFO 2015 170,000 $50,000 1,020,000 210,000 $10,000 1,170,000 230,000 170,000 580,000 940,000 as Revenue 19 CGS 1,000,000 550,000 4 50,000 340,000 110,000 44,000 66,000 1,400,000 800,000 600,000 $20,000 80,000 32,000 48,000 20 Gross margin 21 S&A expense 22 Taxable income 23 Tax expense 24 Net income 23 26 RUE beginning 27 + net income 28 - dividends 29 RE ending 1,000,000 580,000 420,000 3 40,000 8 0,000 32,000 48,000 1,400,000 $10,000 590,000 $20,000 70,000 28,000 42,000 1,800,000 940,000 860,000 650,000 210,000 84,000 126,000 66,000 40,000 48,000 43,000 45,000 . 48,000 26,000 22,000 22,000 42,000 43,000 21,000 21,000 126,000 60,000 26,000 40,000 87,000 31 1. Complete the 2014, 2015, 2016 income statements using LIFO. IC 6A IC 6B info IC 6 statements Type here to search