The Accountant at Cedric Company Has Determined That Income Before

question 103

Multiple Choice

The accountant at Cedric Company has determined that income before income taxes amounted to $7,000 using the FIFO costing assumption.If the income tax rate is 30% and the amount of income taxes paid would be $315 greater if the LIFO assumption were used, what would be the amount of income before taxes under the LIFO assumption?

• A)$5,950
• B)$7,000
• C)$7,315
• D)$8,050

---

Definitions:

Not-for-Profit Entities

Organizations that operate for purposes other than to make a profit, focusing on social, educational, or charitable activities.