1. A company uses the FIFO method of accounting for its inventory. It is contemplating switching to the LIFO method and would like to know the impact of the change on its net income. The following amounts were obtained from its most recent financial statements:
Inventory　　　　　2008　　　　　2009
FIFO　　　　　　$300,000　　　　$350,000
LIFO　　　　　　$240,000　　　　$275,000
Based solely on the above information, what is the impact of a switch to the LIFO method on 2009 net income assuming a tax rate of 35%?