The accountant at Vaughn Company has determined that income before income taxes amounted to $6900 using...

 

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The accountant at Vaughn Company has determined that income before income taxes amounted to $6900 using the FIFO costing assumption. If the income tax rate is 25% and the amount of income taxes paid would be $305 greater if the LIFO assumption were used, what would be the amount of income before taxes under the LIFO assumption? The accountant at Vaughn Company has determined that income before income taxes amounted to $6900 using the FIFO costing assumption. If the income tax rate is 25% and the amount of income taxes paid would be $305 greater if the LIFO assumption were used, what would be the amount of income before taxes under the LIFO assumption?

Answer rating: 100% (QA)

We can start by calculating the income before taxes und... View the full answer