Mainly need solutions for A and B but if C were solved that would be a lot of help as well.

Question 3 : Inventory ( LIFO Disclosure ) Izachi Zach was hired as CEO of Rankin , Inc . on December 31 , 201 1 Rankin currently uses the LIFO method of costing its inventory . " I zachi reviews the process involved in applying the LIFO method and question whether it is cost efficient to continue using LIFO . In order to complete his analysis , Izachi must calculate the net income effects of using the LIFO method relative to the FIFO method Rankin , Inc . adopted LIFO when it began operations on January 1 2008 . The following information is available from Rankin's accounting records Ending Inventory LIFO FIFO December 31 2008 $1 960,000 $2 080 000 December 31 . 2009 2 500.000 2840.000 December 31 . 2010 2.850.000 3. 300 000 December 31 , 2011 3 020.000 3 420.000 Izachi asks you to help him complete his analysis . He tells you to assume a tax rate of 40% and to ignore present value effects in your calculations . He also tells you that he expects inventory costs and quantities to rise in the foreseeable future . Below are the specific instructions he provides you a . Calculate the total amount of any tax differences associated with the use of LIFO since its adoption on January 1 2008 . Be sure to indicate whether more or less tax has been paid as a result of using LIFO Calculate the pre - tax e - tax income statement effect associated with using LIFO for the year ended December 3 11 . Bes 201 1 . Be sure to indicate whether reported income is higher or lower when LIFO is used C . Assume the estimated incremental cost of using LIFO ( relative to FIFO ) is approximately $40,000 per year ( before - tax ) . The incremental costs are primarily due to increased recordkeeping costs . Based on thi information and your analysis , would you'r ecommend that the company stops using LIFO ? Show calculation to support your answer and state any relevant assumptions you are making in your recommendation