Refer to the data below. Credit Company had the following inventory data for the current month:
Assume sales revenue is $7,500, operating expenses are $1,500, and the income tax rate is 40%. How much would the company save in taxes by using LIFO versus FIFO?

Question

Refer to the data below. Credit Company had the following inventory data for the current month:
  Assume sales revenue is $7,500, operating expenses are $1,500, and the income tax rate is 40%. How much would the company save in taxes by using LIFO versus FIFO?

Refer to the Data Below