Question

The management of Tritt Company has asked its accountingdepartment to describe the effect upon the company’s financialposition and its income statements of accounting for inventories onthe LIFO rather than the FIFO basis during 2014 and 2015. Theaccounting department is to assume that the change to LIFO wouldhave been effective on January 1, 2014, and that the initial LIFObase would have been the inventory value on December 31, 2013.Presented below are the company’s financial statements and otherdata for the years 2014 and 2015 when the FIFO method wasemployed.

		Financial Position as of
		12/31/13		12/31/14		12/31/15
Cash		$ 91,490		$131,110		$155,320
Accounts receivable		81,540		101,260		121,910
Inventory		121,910		141,520		177,840
Other assets		161,580		171,720		201,810
Total assets		$456,520		$545,610		$656,880
Accounts payable		$ 41,510		$ 61,380		$ 81,540
Other liabilities		71,750		80,610		112,350
Common stock		201,810		201,810		201,810
Retained earnings		141,450		201,810		261,180
Total liabilities and equity		$456,520		$545,610		$656,880

			Income for Years Ended
			12/31/14		12/31/15
Sales revenue			$1,085,725		$1,613,560
Less:	Cost of goods sold		506,900		766,700
	Other expenses		205,500		305,000
			712,400		1,071,700
Income before income taxes			373,325		541,860
	Income taxes (40%)		149,330		216,744
Net income			$223,995		$ 325,116

Other data:

1.		Inventory on hand at December 31, 2013, consistedof 48,500 units valued at $3.42 each.
2.		Sales (all units sold at the same price in a givenyear):
			2014-158,500 units				2015-188,500 units
3.		Purchases (all units purchased at the same price ingiven year):
			2014-158,500 units	@	$3.99 each		2015-188,500 units	@	$5.02 each
4.		Income taxes at the effective rate of 40% are paidon December 31 each year.

Name the account(s) presented in the financial statements thatwould have different amounts for 2015 if LIFO rather than FIFO hadbeen used, and state the new amount for each account that isnamed