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Q:-The RRR company currently reports their inventory balances under the LIFO inventory method.Information from the notes to the financial statements are included below: LIFo Ending Inventory: $771,689 FIFO Ending inventory: $1,046,700Beginning Retained Earnings: $13,567,000Tax Rate: 21%Directions: 1) Compute the LIFO Reserve2) Compute the change in deferred taxes payable from the LIFO Reserve analyst conversion 3) Compute the impact on retained earnings from the LIFO Reserve analyst conversion