A Firm Using FIFO Had a Beginning Inventory of $48,000

Multiple Choice

A firm using FIFO had a beginning inventory of $48,000, an ending inventory of $56,000, and a pretax income of $400,000.If it had used LIFO, its beginning inventory would have been $20,000, its ending inventory would have been $16,000, and its pretax income would have been:

A) $374,000
B) $388,000
C) $396,000
D) $404,000
E) $412,000