The First Conaony is considering changing from the FIFO to the LIFO method for inventory for 2020. Using FIFO, the beginning and ending inventory is $50,000 and $65,000. If a change were made to LIFO the beginning and ending inventories would be $35,000 and $45,000. Assume that the income tax rate for all years is 30%. What impact would the change have on 2020 income before tax?

21 The First Conaony is considering changing from the FIFO to the LIFO method for inventory for 2020. Using FIFO, the beginning and ending inventory is $50,000 and $65,000. If a change were made to LIFO the beginning and ending inventories would be $35,000 and $45,000. Assume that the income tax rate for all years is 30%. What impact would the change have on 2020 income before tax? Increase (decrease) in 2018 Income before tax Assuming the change was made to LIFO for 2020, what would be the required journl entry? Account Debit Credit