Lewis Corporation is considering switching from FIFO to LIFO to reduce its income tax expense. Assuming a corporate income tax rate of 40%, calculate the tax savings this would have made for 2009 to 2011. Would you recommend that Lewis make this change? Lewis Corporation had traditionally used the FIFO method of inventory valuation. You are given the information shown in Exhibit 1 on transactions during the year affecting Lewis's inventory account. (The purchases are in sequence during the year. The company uses a periodic inventory method.) EXHIBIT 1: Inventory Transactions 2009-2011 2009 Beginning balance 1,840 cartons (@ $20.00 Purchases 600 cartons @ 20.25 800 cartons @ 21.00 400 cartons @ 21.25 200 cartons @ 21.50 Sales 2,820 cartons @ 34.00 2010 Beginning balance Purchases 1,020 cartons 700 cartons @ 21.50 700 cartons @ 21.50 700 cartons @ 22.00 1,000 cartons @ 22.25 Sales 3,080 cartons @ 35.75 2011 Beginning balance Purchases 1,040 cartons 1,000 cartons @ 22.50 700 cartons @ 22.75 700 cartons @ 23.00 700 cartons @ 23.50 Sales 2,950 cartons @ 35.75