Breguet Company Uses the FIFO Inventory Method

Breguet Company uses the FIFO inventory method.The company reported inventory of CHF2,230,000 on its December 31, 2011 statement of financial position.Had average-cost been used, the company would have reported inventory of CHF1,860,000.The company's tax rate is 30% what is the impact of the inventory cost flow assumption on Breguet's 2011 financial statements?

A) Income before taxes reported by Breguet would be CHF370,000 lower as a result of using the FIFO cost flow assumption.
B) Breguet would pay CHF111,000 less in taxes for 2011 as a result of using the FIFO cost flow assumption.
C) Income after taxes reported by Breguet would be CHF259,000 higher as a result of using the FIFO cost flow assumption.
D) The only financial statement affected by the cost flow assumption is the statement of financial position, which would report CHF370,000 more in inventory as a result of using the FIFO cost flow assumption.