The White Company will have higher income taxes. All else being equal and assuming that prices are rising, if the Red and White Companies use the FIFO and LIFO inventory methods, respectively, which of the following statements is true?
A. The White Company will have higher income taxes.
B. The White Company will have a higher inventory balance on its balance sheet.
C. The Red Company will have higher net income.
D. The Red Company will have a lower inventory balance on its balance sheet.
E. Both companies will have the same net income.
Which of the following is an example of a payroll tax expense incurred by the employer?