If Cost of Goods Sold Under FIFO Was $8,000 and Was

question 102

Multiple Choice

If cost of goods sold under FIFO was $8,000 and was $10,000 under LIFO, assuming a tax rate of 40%, how much tax savings resulted from using LIFO?

• A) $ 1,200
• B) $ 800
• C) $ 2,000
• D) There would be no tax savings.

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Definitions:

Medieval Painters

Artists from the Medieval period, roughly spanning the 5th to the late 15th century, known for religious and symbolic art.

Crucifixion

An ancient method of execution where the victim is tied or nailed to a large wooden cross and left to hang until dead.

Correct

Correct refers to being free from errors or mistakes, or conforming to fact or truth.

Democratic Subjectivism

The belief or principle that individual subjective opinions and preferences should direct democratic decision-making processes and policies.