On January 1, 2018, Displays Incorporated has the following account balances:

Accounts		Debit			Credit
Cash	$	24,000
Accounts Receivable		21,000
Supplies		27,000
Inventory		63,000
Land		229,000
Accounts Payable				$	22,000
Notes Payable (5%, due next year)					22,000
Common Stock					188,000
Retained Earnings					132,000
Totals	$	364,000		$	364,000

From January 1 to December 31, the following summary transactions occur:

Purchased inventory on account for $332,000.

Sold inventory on account for $580,000. The cost of the inventory sold was $312,000.

Received $548,000 from customers on accounts receivable.

Paid freight on inventory received, $26,000.

Paid $322,000 to inventory suppliers on accounts payable of $329,000. The difference reflects purchase discounts of $7,000.

Paid rent for the current year, $44,000.

Paid salaries for the current year, $152,000.

Year-end adjusting entries:

Supplies on hand at the end of the year are $7,000.

Accrued interest expense on notes payable for the year.

Accrued income taxes at the end of January are $20,000.

I need help with the following two questions:

a. Suppose Displays Incorporated decided to maintain its internal records using FIFO but to use LIFO for external reporting. Assuming the ending balance of inventory under LIFO would have been $85,000. Calculate the LIFO reserve.

b. Assume Displays Incorporated $62,000 beginning balance of inventory comes from the base year with a cost index of 1. The cost index at the end of 2018 of 1. Calculate the amount the company would report for inventory using dollar-value LIFO.