The Accountant at Reber Company Has Determined That Income Before

Multiple Choice

The accountant at Reber Company has determined that income before income taxes amounted to $6,750 using the FIFO costing assumption. If the income tax rate is 30% and the amount of income taxes paid would be $225 greater if the LIFO assumption were used, what would be the amount of income before taxes under the LIFO assumption?

A) $6,975
B) $7,500
C) $6,090
D) $6,525