The Hasting Company began operations on January 1, 2003 and uses the FIFO method in costing its raw material inventory. An analyst is wondering what net income would have been if the company had consistently followed LIFO (instead of FIFO) from the beginning, 1/1/2003. He has the following information available to him:
12/31/2003 12/31/2004
Final Inventory Final Inventory
Under FIFO $240,000 Under FIFO $270,000
Under LIFO $200,000 Under LIFO $210,000

For 3003 For 2004
Pretax Income under FIFO $120,000 $170,000

What would net income have been in 2004 if Hastings had used LIFO since 1/1/2003?

$ 110,000
$ 150,000
$ 170,000
$ 230,000

Please, explain how to solve this one.