Henri Company Uses the Average-Cost Inventory Method

question 74

Multiple Choice

Henri Company uses the average-cost inventory method. Its 2014 ending inventory was €40,000, but it would have been €60,000 if FIFO had been used. Thus, if FIFO had been used, Henri's income before income taxes would have been

• A) €20,000 greater.
• B) €20,000 less.
• C) the same.
• D) not determinable without the tax rate.

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Definitions:

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