The Accountant at Patton Company Has Determined That Income Before

Multiple Choice

The accountant at Patton Company has determined that income before income taxes amounted to $11,000 using the FIFO costing assumption. If the income tax rate is 30% and the amount of income taxes paid would be $600 greater if the LIFO assumption were used, what would be the amount of income before taxes under the LIFO assumption?

A) $11,600
B) $13,000
C) $9,000
D) $10,400