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Ultimate Copy Centre Ltd. uses laser printers. The company started the year with 90 containers of ink (weighted average cost of $9.30 each, FIFO cost

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Ultimate Copy Centre Ltd. uses laser printers. The company started the year with 90 containers of ink (weighted average cost of $9.30 each, FIFO cost of $8.70 each) During the year, Ultimate Copy Centre purchased 610 containers of ink at $10.30 each and sold 600 units for $22.00 each. The company paid operating expenses throughout the year, to a total of $3,400. Ultimate Copy Centre's income statement excluding the effects of income tax under each of the weighted average cost and FIFO Inventory costing methods is given. Ultimate Copy Centre is a corporation subject to a 21% income tax. (Click the leon to view the income statement.) Compute Ultimate Copy Centre's income tax expense under the weighted-average cost and FIFO inventory costing methods. Which method would you select to (8) maximize income before tax and (b) minimize income tax expense? Compute Ultimate Copy Centre's income tax expense using the weighted average cost and FIFO inventory costing methods. (Round your answer to the nearest whole dollar.) Ultimate Copy Centre Ltd. Income Statement For the Year Ended December 31, 2020 Weighted Average Cost FIFO Sales revenue $ 13.200 $ 13,200 6,102 6,036 Cost of goods sold Gross profit $ 7,098 5 7,164 3.400 3.400 Operating expenses Not income before tax 3,698 5 3,784 Income tax expense Which method would you select to (m) maximize income before tax and (b) minimize income tax expense? (e) The income before taxes is maximized by using the V method of inventory costing (1) The Income taxes are minimized by using the method of inventory costing Income Statement FIFO Ultimate Copy Centre Ltd. Income Statement For the Year Ended December 31, 2020 Weighted- Average cost Sales revenue $ 13,200 $ 6,102 Cost of goods sold Gross profit $ 7,098 $ 3,400 Operating expenses 3,698 $ Not income before tax 13,200 6,036 7,164 3.400 3,764 Print Done

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