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The Accountant at Reber Company Has Determined That Income Before

Question 111

Multiple Choice

The accountant at Reber Company has determined that income before income taxes amounted to $6,750 using the FIFO costing assumption.If the income tax rate is 30% and the amount of income taxes paid would be $225 greater if the average-cost assumption were used, what would be the amount of income before taxes under the average-cost assumption?


A) $6,975
B) $7,500
C) $6,090
D) $6,525

Correct Answer:

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