The management of Cullumber Inc. asks your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods. For 2025, the accounting records show these data. They use the periodic inventory system. Inventory, January 1 (15,000 units) $52,500 Cost of 112,000 units purchased 436,900 Selling price of 96,000 units sold 734,000 Operating expenses 129,000 Units purchased consisted of 31,000 units at $3.70 on May 10, 60,000 units at $3.90 on August 15, and 21,000 units at $4.20 on November 20. Income taxes are 28%. (a) Prepare comparative condensed income statements for 2025 under FIFO and LIFO. Sales Revenue Cost of Goods Sold Beginning Inventory Cost of Goods Sold Condensed Income Statements For the Year Ended December 31, 2025 FIFO $ 734000 $ LIFO 734000 52500 52500 436900 436900 Cost of Goods Available for Sale 489400 489400 Less : Ending Inventory Cost of Goods Sold Gross Profit/(Loss) 114700 127200 374700 362200 Operating Expenses 129000 129000 Income before Income Taxes Income Tax Expense Net Income/(Loss)