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Hammond Company adopted LIFO when it was formed on January 1, 2017. Since then, the...

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Accounting

Hammond Company adopted LIFO when it was formed on January 1, 2017. Since then, the company has had the following purchases and sales of its single inventory item: Year Units Purchased Cost per Unit Units Sold Price per Unit 2017 10,000 $5 8,000 $12 2018 12,000 6 9,000 13 2019 15,000 8 14,000 16 In December 2020, the controller realized that because of an unexpected increase in demand, the company had sold 22,000 units but had purchased only 19,000 units during the year. In 2020, each unit had been sold for $19, and each unit purchased had cost $10. The income tax rate is 21%. Required: Question Content Area 1

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