Given the following data,by how much would taxable income change if LIFO is used rather than FIFO?

Question

Quizplus · Accepted Answer

Using LIFO (Last In, First Out) rather than FIFO (First In, First Out) will result in a decrease in taxable income by $30,000. This is because LIFO assumes that the most recently purchased inventory is sold first, which means that the cost of goods sold is higher and therefore lowers the taxable income.

Given the Following Data,by How Much Would Taxable Income Change