The management of Maine 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 2008 and 2009. The accounting department is to assume that the change to LIFO would have been effective on January 1, 2008, and that the initial LIFO base would have been the inventory value on December 31, 2007. Presented below are the company€™s financial statements and other data for the years 2008 and 2009 when the FIFO method was employed.

Other data:
1. Inventory on hand at 12/31/07 consisted of 40,000 units valued at $3 each.
2. Sales (all units sold at the same price in a given year):
2008€”150,000 units @ $6 each 2009€”180,000 units @ $7.50 each
3. Purchases (all units purchased at the same price in given year):
2008€”150,000 units @ $3.50 each 2009€”180,000 units @ $4.50 each
4. On December 31 each year, the company pays income taxes at the effective rate of 40%.

Instructions
Name the account(s) presented in the financial statements that would have different amounts for 2009 if the company had used LIFO rather than FIFO, and state the new amount for each account that is named. Showcomputations.

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Financial Position as of Accounts receivable Total assets Accounts payable Other liabilities Common stock Total equities Income for Years Endeg Less: Cost of goods sold Other expenses Net income before income taxes Income taxes (40%)