Ivanhoe Corp. began operations on January 1, 2022, and uses FIFO to cost its inventory. Management is contemplating a change to the average cost method and is interested in determining what effect such a change will have on pre-tax income. Accordingly, the following information has been developed: Ending Inventory FIFO Average cost Pre-tax Income (calculated using FIFO) 2022 O $955000. O $1001000. O $797000. O $858000. $480000 400000 751000 2023 $538000 504000 909000 Base upon the above information, a change to the average cost method 2023 would result in pre-tax income for 2023 of

Ivanhoe Corp. began operations on January 1, 2022, and uses FIFO to cost its inventory. Management is contemplating a change to the average cost method and is interested in determining what effect such a change will have on pre-tax income. Accordingly, the following information has been developed: Based upon the above information, a change to the average cost method in 2023 would result in pre-tax income for 2023 of $955000.$1001000$797000.$858000