Jillet Corporation began the year with inventory of $10,000$ units of its only product. The units cost $$8$ each. The company uses a perpetual inventory system and the FIFO cost method. The following transactions occurred during the year:

Purchased $50,000$ additional units at a cost of $$10$ per unit. Terms of the purchases were $210/$

$,$ n$30/$

$.$ The company uses the gross method to record purchase discounts. The inventory was purchased f$.$o$.$b$.$ shipping point and additional freight costs of $$0\mathrm{.}50$ per unit were charged to Jillet.

$1,000$ units purchased during the year were returned to suppliers for credit. Jillet was also given credit for the freight charges of $$0\mathrm{.}50$ per unit on the original purchase. The units were defective and were returned two days after they were received. The remaining inventory was paid within the discount period. $($Hint: The discount applies only to inventory and not the freight.$)$

Sales for the year totaled $45,000$ units at $$18$ per unit. $($Hint: The cost of the inventory sold includes the purchase cost of those units plus freight less purchase discount.$)$

On December $28,$ Jillet purchased $5,000$ additional units at $$10$ each. The goods were shipped f$.$o$.$b$.$ destination and arrived at Jillet$$s warehouse on January $4$ of the following year.

$14,000$ units were on hand at the end of the year.

Required:

For financial reporting purposes, the company uses LIFO $($amounts based on a periodic inventory system$).$ Record the year$-$end adjusting entry for the LIFO reserve, assuming the balance in the LIFO reserve at the beginning of the year is $$15,000.$

Determine the amount the company would report as income before taxes for the year under LIFO. Operating expenses other than those indicated in the above transactions amounted to $$150,000.$