SJV Inc. reported on its balance sheet at December 31, 2018…
SJV Inc. reported on its balance sheet at December 31, 2018 ending inventory of $670,000. SJV uses LIFO. In its notes to financial statements, the company reported the following: 2018 2019 Inventory reported on the balance sheet 670,000 800,000 Value of inventory on FIFO basis 702,000 840,000 Had SJV Inc. used FIFO, would be its income before taxes for 2019 be higher or lower? Specify the $ amount by which it would be higher or lower. (Hint: begin by calculating the LIFO reserve first)