Q9. At the end of the annual accounting period, the inventory records of Boton Company show the following. The company uses FIFO for internal purposes and LIFO for income tax and external reporting purposes. Ending inventory at FIFO Ending inventory at LIFO Prior Year Current Year $100,000 40,000 $180,000 70,000 a. Assume that the inventory difference is recognized in the accounts, and the balance in the allowance account was zero at the beginning of the prior year. Provide the necessary journal entry at the end of the prior year and current year to adjust the LIFO reserve. b. Show how inventory should be shown on its comparative balance sheets for the prior and current years. c. If the company reported cost of goods sold of $480,000 in the current year using LIFO, what would cost of goods sold be using FIFO?