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Can please help me with multiple choice question Sunland Company's inventory records show the following data: Units Unit Cost Inventory: January 1 9900 $8.80 Purchases:
Can please help me with multiple choice question
Sunland Company's inventory records show the following data:
Units | Unit Cost | ||
---|---|---|---|
Inventory: | January 1 | 9900 | $8.80 |
Purchases: | June 18 | 8900 | 8.00 |
November 8 | 6100 | 5.00 |
A physical inventory on December 31 shows 4400 units on hand. Sunland sells the units for $13 each. The company has an effective tax rate of 20%. Sunland uses the periodic inventory method. What is the difference in taxes if LIFO rather than FIFO is used?
$3464 tax savings
$3464 additional taxes
$2804 additional taxes
$3344 additional taxes
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