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10. Caleres, Inc. uses LIFO cost method for financial reporting and tax purpose. The Dec. 31, 2019 financial statements of Caleres, Inc. reported the following
10. Caleres, Inc. uses LIFO cost method for financial reporting and tax purpose. The Dec. 31, 2019 financial statements of Caleres, Inc. reported the following information (in million) 2016 2,135 Inventories (LIFO) LIFO reserve 2015 1,999 1,002 1,132 If Caleres had used the FIFO method, Caleres, Inc. income tax in 2019 would have been (assume a 35% income tax rate): a. $396 million higher b. $45.5 million higher c. $396 million lower d. $45.5 million lower
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