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

Net sales		7,700
Cost of goods available for sale		5,970
Operating expenses		1,818
Effective tax rate		17	%
Ending inventories:
If LIFO is elected		726
If FIFO is elected		888

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

Multiple Choice

• $28.

• $120.

• $109.

• $92.