A Firm Using FIFO Had a Beginning Inventory of $48,000

question 125

Multiple Choice

A firm using FIFO had a beginning inventory of $48,000, an ending inventory of $56,000, and a pretax income of $400,000.If it had used LIFO, its beginning inventory would have been $20,000, its ending inventory would have been $16,000, and its pretax income would have been:

• A)$374,000
• B)$388,000
• C)$396,000
• D)$404,000
• E)$412,000