Multiple Choice
The manager of Yates Company is given a bonus based on income before income taxes. Net income, after taxes, is $5,600 for FIFO and $5,040 for LIFO. The tax rate is 30%. The bonus rate is 20%. How much higher is the manager's bonus if FIFO is adopted instead of LIFO?
A) $200
B) $300
C) $160
D) $560
Correct Answer:
Verified
Correct Answer:
Verified
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