Taylor Corporation has used a periodic inventory system and the LIFO cost method since its inception in 2009. The company began 2016 with the following inventory layers (listed in chronological order of acquisition)

16,000 units @ $15	$	240,000
21,000 units @ $20		420,000
Beginning inventory	$	660,000

During 2016, 42,000 units were purchased for $25 per unit. Due to unexpected demand for the company's product, 2016 sales totaled 51,000 units at various prices, leaving 28,000 units in ending inventory.

Required:

1.

Calculate cost of goods sold for 2016.

2.

Determine the amount of LIFO liquidation profit that the company must report in a disclosure note to its 2016 financial statements. Assume an income tax rate of 40%.

3.	If the company decided to purchase an additional 9,000 units at $25 per unit at the end of the year, how much income tax currently payable would be saved?