Libretto,Inc

question 27

Multiple Choice

Libretto,Inc.,uses the FIFO method and had ending inventory for 2010 of $35,000.If Libretto had used the LIFO method,its ending inventory would have been $32,000.Assume equal beginning inventories for the two methods.If Libretto had used the LIFO method instead of the FIFO method in 2010,how would its income before income tax have changed?

• A)Decrease of $35,000
• B)Increase of $35,000
• C)Decrease of $3,000
• D)Increase of $3,000

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Definitions:

Lithium

A chemical element, often used in the treatment of bipolar disorder, to stabilize mood and prevent extreme emotional swings.

Mania

A mental state characterized by excessive excitement, energy, and euphoria, often found in bipolar disorder during the manic phase.

Depression

Depression is a mental health disorder characterized by persistently low mood, feelings of sadness, and a lack of interest in activities.

Dialectical Behavior Therapy

A type of cognitive-behavioral therapy that emphasizes the psychosocial aspects of treatment, aiming to help people increase their emotional and cognitive regulation.