Question: Esquire Incorporated uses the LIFO method to report its inventory. Inventory at the beginning of the year was $500,000 (20,000 units at $25 each).

Esquire Incorporated uses the LIFO method to report its inventory. Inventory at

Esquire Incorporated uses the LIFO method to report its inventory. Inventory at the beginning of the year was $500,000 (20,000 units at $25 each). During the year, 80,000 units were purchased, all at the same price of $30 per unit. 85,000 units were sold during the year. Assuming an income tax rate of 25%, what is LIFO liquidation profit or loss that the company would report in a disclosure note accompanying its financial statements? Answer is complete but not entirely correct. LIFO liquidation profit (loss) $ 6,250

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