Question 37 (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 Earings TOTAL ASSETS $30.000 TOTAL LIAB. & OWNERS EQUITY $4,000 $13,000 $10,000 100 LIFO INCOME STATEMENT FOR THE YEAR ENDING 1231624: Sales Revenue $60,000 CGS (540,000) Gross Margin $20,000 Other Gains (Losses) (511,000) Pre-Tax Income $9,000 Tax Expense (35%) (53.150) 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 1231 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 Tax Expense? $3,150 $3,995 $3,000 $3,395