Problem 1 Monitor Company uses the LIFO method for valuing its ending inventory. The following financial statement information is available for its first year of operation Monitor Company Income Statement For the year ended December 31 Sales Cost of goods sold Gross profit Expenses Income before taxes $50,000 23,000 $27,000 13,000 $14,000 Monitor's ending inventory using the LIFO method was $8.200. Monitor's accountant determined that had the company used FIFO, the ending inventory would have been $8,500. a. Determine what the income before taxes would have been, had Monitor used the FIFO method of inventory valuation instead of LIFO. b. What would be the difference in income taxes between LIFO and FIFO, assuming a 30% tax rate? c. If Monitor wanted to lower the amount of income taxes to be paid, which method would it choose