Bonita Company began operations in 2018 and for simplicity reasons, adopted weighted average pricing for inventory....

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Bonita Company began operations in 2018 and for simplicity reasons, adopted weighted average pricing for inventory. In 2020, in accordance with other companies in its industry, Bonita changed its inventory pricing to FIFO. The pretax income data is reported below. Year Weighted-Average FIFO 2018 $373,900 $405,500 2019 403,200 430,900 2020 415,300 465,600 Assume a 35% tax rate in all years. Bonita Company began operations in 2018 and for simplicity reasons, adopted weighted average pricing for inventory. In 2020, in accordance with other companies in its industry, Bonita changed its inventory pricing to FIFO. The pretax income data is reported below. Year Weighted-Average FIFO 2018 $373,900 $405,500 2019 403,200 430,900 2020 415,300 465,600 Assume a 35% tax rate in all years.