The Accountant at Blackjack Company Is Figuring Out the Difference

question 16

Multiple Choice

The accountant at Blackjack Company is figuring out the difference in income taxes the company will pay depending on the choice of either FIFO or LIFO as an inventory costing method.The tax rate is 30% and the FIFO method will result in income before taxes of $3,640.The LIFO method will result in income before taxes of $3,290.What is the difference in tax that would be paid between the two methods?

• A)$350
• B)$150
• C)$105
• D)$360

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Definitions:

Risking Cash

Involves putting money at stake in a situation where there is a potential for loss, often seen in investments or gambling.

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