Underwood Copy Centre Ltd. uses laser printers. The company started the year with 90 containers of ink (weighted-average cost of $9.10 each, FIFO cost of $8.60 each). During the year Underwood Copy Centre purchased 720 containers of ink at $10.00 each and sold 620 units for $20.00 each. The company paid operating expenses throughout the year, a total of $3,100 Underwood 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. Underwood Copy Centre is a corporation subject to a 21% income tax. EEB (Click the icon to view the income statement.) Compute Underwood Copy Centre's income tax expense under the weighted-average cost and FIFO inventory costing methods. Which method would you select to (a) maximize income before tax and (b) minimize income tax expense? Compute Underwood Copy Centre's income tax expense using the weighted-average-cost and FIFO inventory costing methods. (Round your answer to the nearest whole dollar.) Underwood Copy Centre Ltd Income Statement For the Year Ended December 31, 2017 Income Statement Weighted- Average Cost Underwood Copy Centre Ltd Income Statement For the Year Ended December 31, 2017 FIFO 12,400 $ Sales revenue Cost of goods sold Gross profit Operating expenses Net income before tax Income tax expense Which method would you select to (a) maximize income before tax and (b) minimize income tax expense? (a) The income before taxes is maximized by using the (b) The income taxes are minimized by using the 6,138 6,262 $ 3,100 3,162 $ 12,400 6,074 6,326 3,100 3,226 Weightec Average cost FIFO Sales revenue Cost of goods sold Gross profit Operating expenses Net income before tax 12,400 $ 6,138 6,262 $ 3,100 3,162 $ 12,400 6,074 6,326 3,100 3,226 method of inventory costing method of inventory costing PrintDone