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Joy Company uses LIFO inventory valuation method and reports the following: 2019 Assets 2019 Inventory 2019 LIFO Reserve 2018 LIFO Reserve $58,720 $3,776 $4,300 $2,900
Joy Company uses LIFO inventory valuation method and reports the following:
| 2019 Assets | 2019 Inventory | 2019 LIFO Reserve | 2018 LIFO Reserve |
| $58,720 | $3,776 | $4,300 | $2,900 |
Assume a tax rate of 25%. Convert to FIFO financial statements. Assume LIFO is allowed for tax purposes.
Required:
a.
Calculate the amount by which the following balance sheet items will increase or decrease for 2019:
Inventory, Total assets, Tax liabilities, and Equity. 8 marks
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