Question 1 (20pts) A gasoline distributor had 110,000 gallons of gasoline valued at $2.80/gallon. They bought 120,000 more gallons at $2.50/gallon, and After that, subsequently 100,000 more gallons Split equally at $2.90 each. they sold 180,000 gallons at $3.60 each. Their selling and administrative expenses are $25,000 and their tax rate is 30%. Will they pay more taxes if they value their inventory using FIFO or LIFO, and what will be the difference between the two methods? Edit Format Table 12pt Paragraph B IUAV T v 20 pts WP I

(20pts) A gasoline distributor had 110,000 gallons of gasoline valued at $2.80/ gallon. They bought 120,000 more gallons at $2.50/ gallon, and subsequently 100,000 more gallons Split equally at $2.90 each. After that, they sold 180,000 gallons at $3.60 each. Their selling and administrative expenses are $25,000 and their tax rate is 30%. Will they pay more taxes if they value their inventory using FIFO or LIFO, and what will be the difference between the two methods