Nueva Company reported the following pretax data for its first year of operations. Net sales 7,420 Cost of goods available for sale 5,830 Operating expenses 1,748 Effective tax rate 25 % Ending inventories: If LIFO is elected 642 If FIFO is elected 818 How much more will Nueva report in income tax if it elects FIFO instead of LIFO?

Multiple Choice

$132.

$107.

$151.

$44.

Data related to the inventories of Costco Medical Supply are presented below:

	Surgical Equipment				Surgical Supplies				Rehab Equipment				Rehab Supplies
Selling price	$	268			$	136			$	345			$	150
Cost		169				138				266				147
Costs to sell		11				17				31				10

In applying the lower of cost or net realizable value rule, the inventory of surgical supplies would be valued at:

Multiple Choice

$138.

$119.

$98.

$78.