Question 38 (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 Earnings TOTAL ASSETS $30,000 TOTAL LIAB. & OWNERS EQUITY $4,000 $13,000 $10,000 $30,000 LIFO INCOME STATEMENT FOR THE YEAR ENDING 1231 2024 Sales Revenue $60,000 CGS ($40,000) Gross Margi $20,000 Other Gains (Losses) ($11,000) Pre-Tax Income $9.000 Tax Expense (35%) (53,150) Net Income $5,850 w 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 takes 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 Net Income? $6,850 $5,305 $6,305 $5,850