GG IncUses LIFO

Multiple Choice

GG Inc.uses LIFO.GG disclosed that if FIFO had been used,inventory at the end of 2016 would have been $15 million higher than the difference between LIFO and FIFO at the end of 2015.Assuming GG has a 40% income tax rate:

A) Its reported cost of goods sold for 2016 would have been $9 million higher if it had used FIFO rather than LIFO for its financial statements.
B) Its reported cost of goods sold for 2016 would have been $15 million higher if it had used FIFO rather than LIFO for its financial statements.
C) Its reported net income for 2016 would have been $9 million higher if it had used FIFO rather than LIFO for its financial statements.
D) Its reported net income for 2016 would have been $15 million higher if it had used FIFO rather than LIFO for its financial statements.