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The management of Blossom Company has asked its accounting department to describe the effect upon the company's financial position and its income statements of accounting for inventories on the LIFO rather than the FIFO basis during 2020 and 2021 The accounting department is to assume that the change to LIFO would have been effective on January 1, 2020, and that the initial LIFO base would have been the inventory value on December 31, 2019. The following are the company's financial statements and other data for the years 2020 and 2021 when the FIFO method was employed Cash Accounts receivable Inventory Other assets Total assets Accounts payable Other liabilities Common stock Retained earnings Total liabilities and equity Financial Position as of 12/31/19 12/31/2012/31/21 $111.600 $161,200 $190,960 99.200 124.000 148,800 148.800 173.600 218,240 198.400 210.800 248,000 $558.000 5669,600 $806.000 $49,600 $74,400 $99.200 86.800 99.200 136,400 268.000 248.000 248,000 173.600 208.000 322.400 5558,000 $669,600 5806.000 Sales revenue Less: Cost of goods sold Other expenses Income for Years Ended 12/31/2012/31/21 $1,116,000 $1,674,000 626,200 937,440 254,200 376,960 880,400 1,314,400 235,600 359,600 94,240 143,840 $141,360 $215,760 Income before income taxes Income taxes (40%) Net income Other data: 1. Inventory on hand at December 31, 2019, consisted of 49,600 units valued at $3.00 each. 2. Sales (all units sold at the same price in a given year): 2020-186,000 units @ $6.00 each 2021-223,200 units @ $7.50 each 3. Purchases (all units purchased at the same price in given year): 2020-186,000 units @ $3.50 each 2021-223,200 units @ $4.40 each 4. Income taxes at the effective rate of 40% are paid on December 31 each year. Name the account(s) presented in the financial statements that would have different amounts for 2021 if LIFO rather than FIFO had been used, and state the new amount for each account that is named S Account Inventory Cost of Goods Sold Income Taxes Retained Earnings New amount for 2021 1 43800 02000 125984

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