The management of Concord Co. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2022, the accounting records show these data.

Inventory, January 1 (13,000units)		$59,800
Cost of100,000units purchased		522,000
Selling price of84,000units sold		735,000
Operating expenses		140,000

Units purchased consisted of35,000units at $5.00on May 10;35,000units at $5.20on August 15; and30,000units at $5.50on November 20. Income taxes are30%.

Prepare comparative condensed income statements for 2022 under FIFO and LIFO.

Prepare comparative condensed income statements for 2022 under FIFO and LIFO. CONCORD CO. Condensed Income Statement For the Year Ended December 31, 2022 FIFO LIFO Sales Revenue 735000 735000 Cost of Goods Sold Beginning Inventory 59800 59800 Cost of Goods Purchased 522000 522000 Cost of Goods Available for Sale 581800 581800 i Ending Inventory 159500 i Cost of Goods Sold 422300 i Gross Profit / (Loss) 312700 Operating Expenses 140000 140000 i Income before Income Taxes 172700 Income Tax Expense 51810 Net Income / (Loss) 120890 $