The following inventory data are available for Karius for the year 2020:

	Beginning	Ending
FIFO	117,300	140,500
LIFO	95,200	128,900

Assuming an income tax rate of 26%, if Karius elects FIFO instead of LIFO, its reported net income will be approximately:

Multiple Choice

• $8,584 higher

• $8,584 lower

• $7,770 higher

• $7,770 lower