Suppose you own 1,000 flip phones that you purchased for $80 (back in the day when that seemed like a good idea). Now their market value has declined and you will have to reduce their carrying value. You expect to be able to sell them for $20 each, after you spend $4 each to package them and $6 each to ship them. After youve written them down, someone offers to purchase 100 of the phones for $30 each. Assuming that will be your only sale this year, what will be your total Cost of Goods Sold?

		$3,000
		$73,000
		$71,000
		$1,000
		$70,000

Here is some information about the units that Company X has in inventory. Date purchased Quantity purchased 01/01/2019 01/01/2020 01/01/2021 100 100 Purchase price per unit $20 $21 $22 100 The company uses the LIFO method. Assume that in 2021 the company will sell 275 units at a price of $40 each and that new units can be purchased today for $22 each. If the tax rate is 30%, then what is the total profit due to the LIFO liquidation (relative to replacement costs)? $201.25 $183.75 $192.50 $210 $175