Question 33 (2 points) Saved The following is the Balance Sheet and Income Statement for Ella Corp $3,000 LIFO BALANCE SHEET AT 12/31/2024: Assets Liabilities & Owners Equity Cash and Cash $1,000 Accounts Payable Equivalents Accounts Receivable, $1.000 Notes Payable Net Inventory $8.000 Common Stock PPE, Net $20,000 Retained Eamings TOTAL ASSETS $30,000 TOTAL LIAB. & OWNERS EQUITY $4,000 $13,000 $10,000 $30,000 LIFO INCOME STATEMENT FOR THE YEAR ENDING 12/31/2024: Sales Revenue $60,000 CGS ($40,000) Gross Margin $20,000 Other Gains (Losses) ($11,000) Pre-Tax Income $9,000 Tax Expense (35%) ($3,150) Net Income $5,850 From its inception, Ella Corp. used LIFO to value its inventory. The LIFO reserve at 1/1/2024 is $500 and the LIFO reserve at 12/31/2024 is $1,200. You may assume that taxes are always 35% and all taxes are paid in cash If from its inception, Ella Corp. has used FIFO to value its inventory instead of LIFO, what would Ella Corp. reports as 1231/2024 Cost of Goods Sold (CGS)? $40,000 $20,700 $20,000 $39,300