What would be the amount of income before taxes


The accountant at Patton Company has determined that income before income taxes amounted to $8,000 using the FIFO costing assumption. If the income tax rate is 30% and the amount of income taxes paid would be $300 greater if the LIFO assumption were used, what would be the amount of income before taxes under the LIFO assumption?

A. $7,000

B. $7,700

C.$8,300

D. $9,000

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Accounting Basics: What would be the amount of income before taxes
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