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

Net sales		7,720
Cost of goods available for sale		5,980
Operating expenses		1,823
Effective tax rate		20	%
Ending inventories:
If LIFO is elected		732
If FIFO is elected		893

How much more will Nueva report in income tax if it elects FIFO instead of LIFO?

Multiple Choice

• $113.

• $93.

• $125.

• $32.