Use the Following Information for Questions

Multiple Choice

Use the following information for questions.
Niles Co.has the following data related to an item of inventory:
-Emley Company has been using the average cost method of inventory valuation for 10 years, since it began operations.Its 2010 ending inventory was $40,000, but it would have been $60,000 if FIFO had been used.Thus, if FIFO had been used, Emley's income before income taxes would have been

A) $20,000 greater over the 10-year period.
B) $20,000 less over the 10-year period.
C) $20,000 greater in 2010.
D) $20,000 less in 2010.