Question 34 (2 points) Saved The following is the Balance Sheet and Income Statement for Ella Corp: Liabilities & Owners Equity Accounts Payable 53,000 LIFO BALANCE SHEET AT 12/31/2024 Assets Cash and Cash $1,000 Equivalents Accounts Receivable, $1,000 Net Inventory $8,000 PPE, Net $20,000 TOTAL ASSETS $30,000 Notes Payable $4,000 Common Stock Retained Earnings TOTAL LIAB. & WNERS EQUITY $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 12/31/2024 Gross Margin (also known as Profit Margin)? $20,000 $39,300 $20,700 $40,000