The management of Shamrock Company has asked its accounting department to describe the effect upon the company's financial position and its income statements of accounting for inventories on the LIFO rather than the FIFO basis during 2017 and 2018. The accounting department is to assume that the change to LIFO would have been effective on January 1, 2017, and that the initial LIFO base would have been the inventory value on December 31, 2016. The following are the company's financial statements and other data for the years 2017 and 2018 when the FIFO method was employed.

Financial Position as of

12/31/16 12/31/17 12/31/18

Cash $91,600 $129,800 $152,000

Accounts receivable 80,000 101,300 171,600

Inventory 171,600 141,200 173,800

Other assets 161,700 170,400 198,000

Total assets $504,900 $542,700 $695,400

Accounts payable $39,800 $59,100 $80,000

Other liabilities 126,900 87,600 158,900

Common stock 198,000 198,000 198,000

Retained earnings 140,200 198,000 258,500

Total liabilities and equity $504,900 $542,700 $695,400

Income for Years Ended

12/31/17 12/31/18

Sales revenue $1,070,300 $1,646,100

Less:Cost of goods sold 495,900 762,700

Other expenses 206,800 303,600

702,700 1,066,300

Income before income taxes 367,600 579,800

Income taxes (40%) 147,040 231,920

Net income $220,560 $347,880

Other data:

1.Inventory on hand at December 31, 2016, consisted of42,900units valued at $4each.

2.Sales (all units sold at the same price in a given year):2017-152,900units@&..;@$9.00each

3.Purchases (all units purchased at the same price in given y..;@$4.20each2018-182,900units@$5.30each

4.Income taxes at the effective rate of 40% are paid on December 31 each year.

Name the account(s) presented in the financial statements that would have different amounts for 2018 if LIFO rather than FIFO had been used, and state the new amount for each account that is named.

Account New amount

for 2018

Income Taxes

Inventory

Other Expenses

Cost of Goods Sold

Retained Earnings

Common Stock

Other Liabilities

Accounts Receivable

Accounts Payable

Cash

$

Accounts Receivable

Cash

Cost of Goods Sold

Income Taxes

Other Liabilities

Accounts Payable

Other Expenses

Common Stock

Inventory

Retained Earnings

Other Liabilities

Other Expenses

Accounts Receivable

Cash

Accounts Payable

Common Stock

Income Taxes

Cost of Goods Sold

Inventory

Retained Earnings

Accounts Receivable

Cash

Retained Earnings

Inventory

Common Stock

Cost of Goods Sold

Income Taxes

Other Liabilities

Accounts Payable

Other Expenses

Cost of Goods Sold

Other Expenses

Income Taxes

Inventory

Retained Earnings

Other Liabilities

Accounts Payable

Accounts Receivable

Cash

Common Stock