On January $1^{st},2003,$ Pumpkin Co decides to change from LIFO to FIFO to account for its inventory for financial reporting $($GAAP$)$ presentation purposes. To be IRS compliant, they also switch to FIFO for tax purposes at this time. The company began operations on $\frac{1}{1}\frac{?}{2001}.$ The company purchase four inventory items per year $($in March, April, May, & June$),$ and sells two units of inventory each December. Pumpkin sells their inventory for $$220,000$ per item.

Price paid by Pumpkin for inventory purchases $(1$ item per purchase$)$:

$2001,{2002}_{{?}_{?}}$

March Purchase $$200,000,$$$160,000$

April Purchase $$190,000,$$$150,000$

May Purchase $$180,000,$$$140,000$

June Purchase $$170,000,$$$130,000$

Assume Pumpkin pays $25\%$ in taxes on their income during $2001$ and $2002.$ Due to tax law change Pumpkin anticipates paying $35\%$ on their income in years after $2002.$