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