The Antman Corporation began business January 1st 2019. During 2019 they had the following transactions:

January 1st sold 400 shares of stock for $20,000

January 5th purchased 1000 ant traps for $1 each

1000

February 28th purchased 2000 ant traps for $1.10 each

2200

July 5th purchased 3000 ant traps for $1.25 each

3750

October 1st purchased 4000 ant traps for $1.50 each

6000

December 20th purchased 5000 ant traps for $1.75 each

875021700

During 2019 Antman Corporation sold 9800 ant traps for $22,050 (or an average of $2.25 each)

Antman Corporation is in Knoxville TN so all their employees are Volunteers hence they have no payroll

Antman is in the 21% tax bracket

On December 31st Antman had not accounts receivables, accounts payables or income tax payable

REQUIRED:

A) IF ANTMAN USED FIFO (FIRST IN FIRST OUT) DETERMINE

A1) ANTMAN ENDING INVENTORY (DOLLARS NOT UNITS)

A2) ANTMAN COST OF GOODS SOLD

A3) ANTMAN NET INCOME (DON'T FORGET TAXES)

A4) ANTMAN ENDING CASH

B) IF ANTMAN USED LIFO (LAST IN FIRST OUT) DETERMINE

B1) ANTMAN ENDING INVENTORY (DOLLARS NOT UNITS)

B2) ANTMAN COST OF GOODS SOLD

B3) ANTMAN NET INCOME (DON'T FORGET TAXES)

B4) ANTMAN ENDING CASH

C)

HOW MUCH CASH DID ANTMAN SAVE USING LIFO VERSUS FIFO?

D) BONUS WORTH 6 POINT (NO PARTIAL CREDIT): UNDER LIFO HOW MUCH TAXES DID ANTMAN SAVE BY

MAKING THAT DECEMBER 20TH PURCHASE OF INVENTORY?