The beta company began operations on Jan 1, 2016, and uses the LIFO method in costing its raw material inventory. What would the net income have been if the company had consistently followed FIFO instead of LIFO since Jan 1, 2016?

Final inventory 12/31/2016 12/31/2017

Under FIFO $200,000 $220,000

Under LIFO $250,000 $280,000

Pretax income

under

FIFO $130,000 $160,000