Question 5 of 7 0.39 / 1.5 View Policies Show Attempt History Current Attempt in Progress The management of Cullumber Company asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2020, the accounting records provide the following data. Inventory, January 1 (5,000 units) Cost of 50,000 units purchased Selling price of 40,000 units sold Operating expenses $22.500 266,000 350,000 130.000 Units purchased consisted of 17,500 units at $5.10 on May 10; 17,500 units at $5.30 on August 15; and 15,000 units at $5.60 on November 20. Income taxes are 30%. (a) Your answer is partially correct. Prepare comparative condensed income statements for 2020 under FIFO and LIFO. Cullumber Company Condensed Income Statement For the Year Ended December 31, 2020 FIFO LIFO Sales Revenue $ 350000 $ 350000 Cost of Goods Sold Beginning Inventory 22500 22500 Cost of Goods Purchased 266000 266000 Cost of Goods Available for Sale 288500 288500 Ending Inventory 84000 i Cost of Goods Sold Gross Profit/(Loss) ) Operating Expenses Income before Income Taxes Income Tax Expense Net Income /(Loss) $ $