Question Completion Status: 1. Carolina Company uses the LIFO method for valuing its ending inventory. The following financial statement information is available for its first year of operation: Carolina Company Income Statement For the year ended December 31 Sales S60,000 Cost of goods sold 23.000 Gross profit $37.000 Expenses 13.000 Income before taxes $24.000 Carolina's ending inventory using the LIFO method was $8,700. Carolina's accountant determined that had the company used FIFO, the ending inventory would have been $9.100. a. Determine what the income before taxes would have been, had Carolina used the FIFO method of inventory valuation instead of LIFO. b. What would be the difference in income taxes between LIFO and FIFO, assuming a 30% tax rate? c. If Carolina wanted to lower the amount of income taxes to be paid, which method would it choose? Save and ud Suit fcand submit. Click Save All Answers to save all stars Question Completion Status: For the year ended December 31 Sales $60.000 Cost of goods sold 23.000 Gross profit $37.000 Expenses 13.000 Income before taxes S24.000 Carolina's ending inventory using the LIFO method was $8,700. Carolina's accountant determined that had the company sed FIFO, the ending inventory would have been $9,100. a. Determine what the income before taxes would have been, had Carolina used the FIFO method of inventory valuation instead of LIFO. b. What would be the difference in income taxes between LIFO and FIFO, assuming a 30% tax rate? c. If Carolina wanted to lower the amount of income taxes to be paid, which method would it choose? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). Arial 10pt BI y . Paragraph v 111 Se All Save and some and anumit. Click Save All Answers to save all answers