Choosing an inventory costing method. Lo Lan Corporation uses the LIFO inventory costing method to account for its inventory. In the most recent year, Lan had net sales of $4,000, cost of goods sold of $1,685, and operating expenses of $1,750. Lan is subject to a tax rate of 30%. Had Lan used the FIFO inventory costing method, its cost of goods sold for the year would have been $1,495. Required:

Prepare comparative income statements under LIFO and FIFO