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

question 194

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

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Definitions:

Inhibitions

Psychological restraints or barriers that hinder a person from expressing thoughts, feelings, or behaviors in a freely expressive manner.

Suicidal Thoughts

Thoughts about taking one's own life, often associated with depression or other mental health conditions.

Dependent

Relying on someone or something else for support, sustenance, or aid. In a research context, it refers to the variable being tested and measured.

Developmentally Disabled

Refers to individuals who experience significant limitations in intellectual functioning and adaptive behavior, which manifest before the age of 18.