A firm reported income before taxes of $12,500 for the year 2020 . Its inventory was stated on a FIFO basis and amounted to $1,800 at the beginning of the year and $2,200 at the end of the year. If the firm has always used the LIFO costing method (rather than FIFO), its inventory would have been stated at $1,500 at the beginning of the year and $1,760 at the end of the year. If the firm had always used LIFO rather than FIFO, it would have reported income before taxes for the year 2020 of: A) $12,060 B) $12,240 C) $12,320 D) $12,360 E) $12,680