financeOn January 15, 2011, BassTrack sold 1,000 Ace-5 fishing reels to Angler’s Warehouse. Immediately prior to this sale, BassTrack’s perpetual inventory records for Ace-5 reels included the following cost layers:
$$
\begin{array}{|cc}
\textbf{Purchase Date} & & \textbf{Quantity} & \textbf{Unit Cost} & \textbf{Total Cost}\\
\text {Dec. 12, 2010} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 600 & \$29 & \$17,400 \\
\text { Jan. 9, 2011} & \cdots\cdots\cdots\cdots\cdots\cdots\cdots\cdots & 900 & 32 & 28,800 \\
\text {Total on hand } & \cdots\cdots\cdots\cdots\cdots\cdots\cdots & 1,500 & & \$46,200\\
\end{array}
$$
Instructions\
Note: We present this problem in the normal sequence of the accounting cycle-that is, journal entries before ledger entries. However, you may find it helpful to work part $\mathbf{b}$ first.\
c. Refer to the cost of goods sold figures computed in part a. For financial reporting purposes, can the company use the valuation method that resulted in the lowest cost of goods sold if, for tax purposes, it used the method that resulted in the highest cost of goods sold? Explain.