marsilni

4)
Given the following inventory information about the Buckner Company:

Year-end last in, first out (LIFO) inventory of $6,500.
Year-end LIFO reserve of $2,500.
The current year's LIFO cost of goods sold (COGS) is $15,000.
After tax income is $1,600.
The previous year's LIFO reserve was $2,000.

How much higher would the firm's retained earnings be on a first in, first out (FIFO) basis if the firm's tax rate is 40%?

A) $2,100.

B) $1,500.

C) $1,800.



Add back ending LIFO reserve adjusted for taxes. 2500*.6=1500 really simple question