A company's ending inventory balance is $140,000 using the LIFO method. If the company used the FIFO

Question:

A company's balance is $140,000 using the LIFO method. If the company used the FIFO method, the balance would have been $172,000. If the company used the Moving Average method, the balance would have been $158,000. The company uses a perpetual inventory system and is subject to a 35% corporate tax rate.
Required
Calculate
a) The company's LIFO Reserve
b) The total taxes deferred over time by using the LIFO method.
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...