The management of Tamarisk Company has asked its accounting department to describe the effect upon the company's financial position and its income statements of accounting for

imentories on the LIFO rather than the FIFO basis during $2025$ and $2026.$ The accounting department is to assume that the change to LIFO would have been effective on January $1,2025,$ and

that the initial LIFO base would have been the inventory value on December $31,2024.$ The following are the company's financial statements and other data for the years $2025$ and $2026$ when

the FIFO method was employed.

Other data:

Inventory on hand at December $31,2024,$ consisted of $44,000$ units valued at $$3\mathrm{.}00$ each.

Sales $($all units sold at the same price in a given year$)$:

$2025-165,000$ units @ $$6\mathrm{.}00$ each $2026-198,000$ units @ $$7\mathrm{.}50$ each

Purchases $($all units purchased at the same price in given year$)$:

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 $2026$ if LIFO rather than FIFO had been used, and state the new amount for each account that

is named.Cast Iron Company, on each nondelinquent sale, receives revenues with a present value of $$1,300$ and incurs costs with a value of $$1,050.$ Cast Iron has been asked to extend credit to a new customer. You can find little information on the firm but you believe that the probability of payment is no better than $0\mathrm{.}77$ and that there will be a repeat order in one year if payment occurs.

If the discount rate is $12\%,$ calculate the minimum probability of payment on the repeat order at which credit can be extended.