请问一道LIFO和FIFO的问题 company, president, determine, accounting

simonwoo

Patch Grove Nursery uses the LIFO inventory accounting method. Maria Huff, president, wants to determine the financial statement impact of changing to the FIFO accounting method. Selected company information follows:

• Year-end inventory: $22,000
• Change in LIFO reserve: $1,000
• LIFO cost of goods sold: $18,000
• After-tax income: $2,000
• Tax rate: 40%

Under FIFO, the nursery’s ending inventory and after-tax profit for the year would have been:

FIFO ending inventory

FIFO after-tax profit

A) $18,000 $2,600

B) $26,000 $1,400

C) $26,000 $2,600

为什么选C