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At December 31, 20X1, the records of WT Corporation reflected the following information: Revenue......................$100,000 Cost of Goods Sold (FIFO).... 4,000 Operating Expenses........... 66,000 Income tax
At December 31, 20X1, the records of WT Corporation reflected the following information: Revenue......................$100,000 Cost of Goods Sold (FIFO).... 4,000 Operating Expenses........... 66,000 Income tax rate.............. 40% To "save cash" WT Corporation is considering using the LIFO method for income tax reporting, in which case Cost of Goods Sold would be $7,000. Calculate how much cash WT Corporation would save during 20X1 by using LIFO rather than FIFO.
| 3,000 |
| 1,800 |
| 1,200 |
| 0 |
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