Use the data for Ontario, Inc., in Exercise 6-16A to illustrate Ontario, Inc.s income tax advantage from

Question:

Use the data for Ontario, Inc., in Exercise 6-16A to illustrate Ontario, Inc.’s income tax advantage from using LIFO over FIFO. Sales revenue is $9,000, operating expenses are $1,400, and the income tax rate is 28%. How much in taxes would Ontario, Inc., save by using the LIFO method versus FIFO?