First-in, first-out has been used for inventory valuation by the Atwood Co. since it was organized in 2005. Using the data that follow, predetermines the net incomes for each year on the assumption of inventory valuation on the last-in, first-outbasis:

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2005 2006 2007 2008 Reported net income-FIFO basis Reported ending inventories FIFO basis Ending inventories LIFO basis $15,500 40.000 34.250 44.000 61,500 02.000 26,000 120,000 95,000 05,000 56.500 75,100