4. (25 pt: Dublin Company has a beginning inventory of $60,000 using LIFO. During the third...

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4. (25 pt: Dublin Company has a beginning inventory of $60,000 using LIFO. During the third quarter, they sell inventory which cost $120,000, or $22,000 more than they purchased, thus eroding away the inventory. They plan to replace the inventory by year end at a cost of $25,000. Prepare the cost of goods sold entry for the third quarter. Remember to record the entire cost of goods sold. Dr. Cr. Limerick Company has $400,000 of sales and a related cost of goods sold and operating expenses of $175,000 for the first quarter. Their tax rate is 20% (combined federal and state). During the first quarter, they had an extraordinary loss before tax effect from a legal settlement of $350,000. Prepare the first quarter income statement. 4. (25 pt: Dublin Company has a beginning inventory of $60,000 using LIFO. During the third quarter, they sell inventory which cost $120,000, or $22,000 more than they purchased, thus eroding away the inventory. They plan to replace the inventory by year end at a cost of $25,000. Prepare the cost of goods sold entry for the third quarter. Remember to record the entire cost of goods sold. Dr. Cr. Limerick Company has $400,000 of sales and a related cost of goods sold and operating expenses of $175,000 for the first quarter. Their tax rate is 20% (combined federal and state). During the first quarter, they had an extraordinary loss before tax effect from a legal settlement of $350,000. Prepare the first quarter income statement.