The Following Information Can Be Found in Manufacturer Company's Financial

The following information can be found in Manufacturer Company's financial statements. $\begin{array}{llll}&\underline{2006}&\underline{2005}\\\text { COGS } & \$ 2,500,000 & \$ 2,000,000 \\\text { Inventory } & \$ 180,000 & \$ 140,000 \\\text { Net income } & \$ 125,000 & \$ 100,000 \\\text { Retained earnings } & \$ 500,000 & \$ 400,000 \\\text { LIFO reserve } & \$ 40,000 & \$ 30,000\\\text { Tax rate }&40\%&40\%\end{array}$

-If Manufacturer used FIFO, its net income for fiscal 2006 would be:

A) $165,000.
B) $149,000.
C) $135,000.
D) $131,000.