E8-18B (FIFO and LIFO; Income Statement Presentation) The board of directors of Soho Corporation is considering whether or not it should instruct the accounting department to shift from a first-in,

E8-18B (FIFO and LIFO; Income Statement Presentation) The board of directors of Soho Corporation is considering whether or not it should instruct the accounting department to shift from a first-in, firstout (FIFO) basis of pricing inventories to a last-in, first-out (LIFO) basis. The following information is

available.

Sales                                 10,500 units @ $45

Inventory, January 1          3,000 units @ $15

Purchases                          3,000 units @ $17

                                           5,000 units @ $20

                                           3,500 units @ $25

Inventory, December         31 4,000 units @ ?

Operating expenses          $100,000

Instructions

Prepare a condensed income statement for the year on both bases for comparative purposes.