On January 1, 2016, Happy Tubs sold a hot tub to Monica, receiving a two-month, noninterest-bearing note in exchange for a hot tub that normally sells for $8,000. The note is for an amount that achieves an effective interest rate of 10% per year. Required: 1. Prepare the journal entry to record the sale. 2. Prepare any adjusting entry necessary on December 31, 2016. 3. Prepare any adjusting entry necessary on December 31, 2017.

The Foxworthy Corporation uses a periodic inventory system and the LIFO inventory cost method for its one product. Beginning inventory of 40,000 units consisted of the following, listed in chronological order of acquisition:

24,000 units at a cost of $6.00 per unit =	$144,000
16,000 units at a cost of $7.00 per unit =	112,000

During 2016, inventory quantity declined by 18,000 units. All units purchased during 2016 cost $8.00 per unit. Required: Calculate the before-tax LIFO liquidation profit or loss that the company would report in a disclosure note assuming the amount determined is material.