Harrison Company had the below inventory in this fiscal year. The company currently uses the FIFO method of accounting for inventory.

In a meeting of its board, one board member advocated considering switching to LIFO for potential tax savings. You, however, are worried that reported net income will reduce if LIFO is used. This could impact on bank loan covenants.

How much would net income decrease if LIFO were used instead of FIFO? Hint: to determine this you will need to calculate cost of goods sold using both FIFO and LIFO. Disregard the amount of any taxes.

If LIFO would result in a lower net income, just enter the amount of your response. If FIFO would result in a lower net income, enter your response as a negative number.

Beginning Inventory, January 1: 104 units @ $15.00

Purchase, February 1 160 units @ $18.00

Purchase, March 1 40 units @ $18.50

Purchase, April 1 88 units @ $18.75

Sales, all made May 1 292 units @ $30.00

Ending Inventory, December 31: 96 units