Solved

If Cost of Goods Sold Under FIFO Was $8,000 and Was

Question 102

Multiple Choice

If cost of goods sold under FIFO was $8,000 and was $10,000 under LIFO, assuming a tax rate of 40%, how much tax savings resulted from using LIFO?

A) $ 1,200
B) $ 800
C) $ 2,000
D) There would be no tax savings.

Related Questions

Q55: Cost of goods sold is equal to

Q97: All of the following statements regarding the

Q98: Identify which inventory costing method (LIFO or

Q99: Adam Inc.uses a perpetual inventory system.

Q101: When the market value of inventory items

Q103: The inventory account a manufacturer uses to

Q105: During a period of increasing cost prices,

Q106: Which one of the following ratios is

Q107: Net purchases equal purchases less purchase return,

Q117: If ending inventory is understated,then cost of