Question: AAA Hardware uses the LIFO method to report its inventory. Inventory at the beginning of the year consisted of 2 0 , 0 0 0

AAA Hardware uses the LIFO method to report its inventory. Inventory at the beginning of the year consisted of 20,000 units of the company's one product. These units cost $16 each. During the year, 70,000 units were purchased at a cost of $19 each, and 71,500 units were sold. Near the end of the fiscal year, management is considering the purchase of an additional 7,500 units at $19.
Required:
What would be the effect of this purchase on income before income taxes?
What would be the effect of this purchase on income before income taxes using FIFO?
\table[[1. Income before income taxes would be,Lower],[2. Income before income taxes would be,]]
AAA Hardware uses the LIFO method to report its

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