The Accountant at Landry Company Is Figuring Out the Difference

question 58

Multiple Choice

The accountant at Landry 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 $17,480.The LIFO method will result in income before taxes of $16,200.What is the difference in tax that would be paid between the two methods?

• A)$1,280
• B)$896
• C)$384
• D)Cannot be determined from the information provided.

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Definitions:

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A secondary or subordinate system that is part of a larger system, contributing to the overall function.

Subsystem

A self-contained system within a larger system, with its specific roles and functions contributing to the overall effectiveness.

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The methods and strategies that individuals use to deal with stress, challenges, or trauma.