what is the effect on income before income taxes in 2008 of a change to the lifo met 610585

Change in Inventory Cost Flow Assumption – The Berg Company began operations on January 1, 2007 and uses the FIFO method in costing its raw material inventory. During 2008 management is contemplating a change to the LIFO method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed:

2007	2008
FIFO—Ending inventory	$240,000	$270,000
LIFO—Ending inventory	200,000	210,000
Income before income taxes (computed under the FIFO method)	120,000	170,000

Required

What is the effect on income before income taxes in 2008 of a change to the LIFO method?