The Accountant at Peacock Company Has Determined That Income Before

question 114

Multiple Choice

The accountant at Peacock Company has determined that income before income taxes amounted to $6500 using the FIFO costing assumption. If the income tax rate is 30% and the amount of income taxes paid would be $318 greater if the LIFO assumption were used what would be the amount of income before taxes under the LIFO assumption?

• A) $5440
• B) $6500
• C) $6818
• D) $7560

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