Multiple Choice Question 138

The accountant at Vaughn Manufacturing is figuring out the difference in income taxes the company will pay depending on the choice of either FIFO or LIFO as an inventory costing method. The tax rate is 25% and the FIFO method will result in income before taxes of $17830. The LIFO method will result in income before taxes of $16500. What is the difference in tax that would be paid between the two methods?

$997

$1330

$333

0