Given the Following Data, What Would the Income Tax Amount

question 115

Multiple Choice

Given the following data, what would the income tax amount be if the company uses FIFO?

• A)$ 6,800
• B)$ 8,960
• C)$10,200
• D)$13,440

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Definitions:

Depreciation Method

A systematic approach for allocating the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.

Residual Value

The estimated value that an asset will have at the end of its useful life, often considered for depreciation calculations.