Question: Bothell Corp uses FIFO for internal reporting purposes and LIFO for financial and income tax purposes. At the end of 2022, the following information was

Bothell Corp uses FIFO for internal reporting purposes and LIFO for financial and income tax purposes. At the end of 2022, the following information was obtained from the inventory records:

12/31/21 12/31/22

Ending inventory @ FIFO $78,650 $93,250

Ending inventory @ LIFO 68,500 84,350

Required:

A) Prepare the necessary adjusting journal entry assuming that Bothell converts the accounts to LIFO @ the end of 2022

B) Indicate how Bothell would disclose the inventory value on its comparative balance sheets prepared @ the end of 2022

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