Problem 8-7 Your answer is partially correct. Try again The management of Concord Company has asked its accounting department to describe the effect upon the company's financial position and its income statements of accounting for inventories on the LIFO rather than the FIFO basis during 2017 and 2018. The accounting department is to assume that the change to LIFO would have been effective on January 1, 2017, and that the initial LIFO base would have been the inventory value on December 31, 2016. The following are the company's financial statements and other data for the years 2017 and 2018 when the FIFO method was employed Financial Position as of 12/31/16 12/31/17 12/31/18 $90,600 $128,100 $151,000 as Accounts receivable Inventory Other assets 99,300 139,300 170,900 $458,100 $537,600 $653,000 79,600 126,600 161,300 126,600 178,500 196,900 Total assets Accounts payable Other liabilities Common stock Retained earnings $ 39,200 59,600 84,200 196,900 196,900 $458,100 $537,600 $653,000 80,600 196,900 141,400 $79,600 113,600 196,900 262,900 Total liabilities and equity Income for Years Ended 12/31/17 12/31/18 Sales revenue $1,065,400 504,100 201,300 705,400 360,000 144,000 $216,000 $1,548,700 741,500 306,300 1,047,800 500,900 200,360 300,540 Cost of goods sold Other expenses Less: Income before income taxes Income taxes (40%) Net income Other data Other data: 1. Inventory on hand at December 31, 2016, consisted of 42,200 units valued at $3 each 2. Sales (all units sold at the same price in a given year): 2017-152,200 units @ $7 each 2018-182,200 units @ $8.50 each 3. Purchases (all units purchased at the same price in given year): 2017-152,200 units @$4.00 each 2018-182,200 units @$5.00 each 4. Income taxes at the effective rate of 40% are paid on December 31 each year. Name the account(s) presented in the financial statements that would have different amounts for 2018 if LIFO rather than FIFO had been used, and state the new amount for each account that is named. New amount for 2018 Account Inventory 158,584 Cost of Goods Sold 939,805 Retained Earnings 211,870 Income Taxes 141,246 Retained Earnings v 497,904