Question: Study Appendix 16A. Refer to the preceding problem. Suppose Unisys acquired 60 extra units at $15 each on June 29, 2012, a total of $900.

Study Appendix 16A. Refer to the preceding problem. Suppose Unisys acquired 60 extra units at $15 each on June 29, 2012, a total of $900. How would gross margin and income taxes be affected under FIFO?

(That is, compare FIFO results before and after the purchase of 60 extra units.) Under LIFO? (That is, compare LIFO results before and after the purchase of 60 extra units.) Show computations and explain.

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