The Accountant at Patton Company Has Determined That Income Before

question 137

Multiple Choice

The accountant at Patton Company has determined that income before income taxes amounted to $11,000 using the FIFO costing assumption.If the income tax rate is 30% and the amount of income taxes paid would be $900 greater if the LIFO assumption were used, what would be the amount of income before taxes under the LIFO assumption?

• A)$11,900
• B)$14,000
• C)$8,000
• D)$10,100