Refer to Practice 9-8. Assume that the company has no expenses except for cost of goods sold,

Question:

Refer to Practice 9-8. Assume that the company has no expenses except for cost of goods sold, the selling price per unit is $5 in each year, and that the income tax rate is 40%. Compute the total amount of income taxes owed for Year 1 through Year 4 assuming that
(1) The company uses LIFO inventory valuation and
(2) The company uses FIFO inventory valuation.