Question: Esquire Inc. uses the LIFO method to value its inventory. Inventory at January 1, 2013, was $600,000 (30,000 units at $20 each). During 2013, 100,000

Esquire Inc. uses the LIFO method to value its inventory. Inventory at January 1, 2013, was $600,000 (30,000 units at $20 each). During 2013, 100,000 units were purchased, all at the same price of $24 per unit. 110,000 units were sold during 2013. Esquire uses a periodic inventory system.

Assuming an income tax rate of 40%, what is LIFO liquidation profit or loss that the company would report in a disclosure note accompanying its financial statements?

LIFO liquidation profit (loss)

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