Problem 8-9 LIFO liquidation [LO8-4,8-6 Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception in 2011. The company began 2018 with the following inventory layers (isted in chronological order of acquisition): 0,000 units $15 15,000 units $20 Beginning inventory 150,000 300,000 450,000 During 2018, 30,000 units were purchased for $25 per unit. Due to unexpected demand for the company's product, 2018 sales totaled 40,000 units at various prices, leaving 15,000 units in ending inventory. Required: 1. Calculate cost of goods sold for 2018. 2. Determine the amount of LIFO liquidation profit that the company must report in a disclosure note to its 2018 financial statements. Assume an income tax rate of 40%. 3. If the company decided to purchase an additional 10,000 units at $25 per unit at the end of the year, how much income tax currently payable would be saved? 1. Cost of goods sold 2. LIFO liquidation profit 3. Income tax payable Problem 8-13 Dollar-value LIFO [LO8-8] On January 1, 2018, the Taylor Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $400,000. Inventory data for 2018 through 2020 are as follows: g Invento Date 12/31/2018 12/31/2019 12/31/2020 441,000 487,200 510,000 1.05 1.12 1.20 Required Calculate Taylors ending inventory for 2018, 2019, and 2020. Inventory Layers Converted to Base Year Cost ntory Layors Converted to Cost Inventory DVL Cost Inventory Layers Inventory at Year- End Cost Inventory Layers at Base Year Cost InventoryYoar-End Cost Index Layers at Base Cost Index Date Converted to Year Cont Cost 1/01/2018 12/31/2018 Base 2018 Base 2018 2019 Base 2018 2019 12/31/2019 12/31/2020