The income taxes saved by using LIFO instead of FIFO are equal to ________.
A) the tax rate times the change in the ending inventory from last year to the current year
B) the tax rate times the cost to retail ratio
C) the tax rate times the LIFO reserve
D) the tax rate times the change in the LIFO reserve

Question

Quizplus · Accepted Answer

The Answer of The income taxes saved by using LIFO instead of FIFO are equal to ________.
A) the tax rate times the change in the ending inventory from last year to the current year
B) the tax rate times the cost to retail ratio
C) the tax rate times the LIFO reserve
D) the tax rate times the change in the LIFO reserve

The Income Taxes Saved by Using LIFO Instead of FIFO