Nu Company reported the following pretax data for its first year of operations.

Net sales 2,800 Cost of goods available for sale 2,500

Operating expenses 880

Effective tax rate 40%

Ending inventories:

If LIFO is elected 820

If FIFO is elected 1,060

What is Nu's net income if it elects LIFO?

a. $288.

b. $144.

c. $240.

d. $480.