Patch Grove Nursery uses the LIFO inventory accounting method. Maria Hu", president, wants to determine the !nancial statement impact of changing to the FIFO accounting method. Selected company information follows:

Year-end inventory: $22,000 LIFO reserve: $4,000 Change in LIFO reserve: $1,000 LIFO cost of goods sold: $18,000 After-tax income: $2,000

Tax rate: 40% Under FIFO, the nursery's ending inventory and after-tax pro!t for the year would have been:

FIFO ending inventory FIDO after-tax profit

A) $18,000 $2,600

B) $26,000 $2,600

C) $26,000 $1,400