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Question 3 Company XYZ switched from LIFO inventory to FIFO during the year. The pretax income data under each method is the following: FIFO: $210,000

Question 3

Company XYZ switched from LIFO inventory to FIFO during the year. The pretax income data under each method is the following:

FIFO: $210,000 in 2020; $135,000 in 2019; $142,500 in 2018

LIFO: $189,000 in 2020; $111,500 in 2019; $138,000 in 2018

What net income amount did the company report in 2018? 2020? Assume a tax rate of 30%. Prepare the comparative income statements for the company in 2020.

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