What effect, if any, would the proposed change have on Vance's income tax expense, net income,...

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What effect, if any, would the proposed change have on Vance's income tax expense, net income, and cash flows? A FIFO 1500000 $ LIFO 80000 Income tax expense Net income 600000 +A +A $ 320000 Vance Company reported the following summarized annual data at the end of 2020: Sales revenue Cost of goods sold* Gross margin $1,000,000 600,000 400,000 Operating expenses 250,000 Income before income taxes $150,000 *Based on an ending FIFO inventory of $250,000. The income tax rate is 40%. The controller of the company is considering a switch from FIFO to LIFO. He has determined that on a LIFO basis, the ending inventory would have been $180,000. What effect, if any, would the proposed change have on Vance's income tax expense, net income, and cash flows? A FIFO 1500000 $ LIFO 80000 Income tax expense Net income 600000 +A +A $ 320000 Vance Company reported the following summarized annual data at the end of 2020: Sales revenue Cost of goods sold* Gross margin $1,000,000 600,000 400,000 Operating expenses 250,000 Income before income taxes $150,000 *Based on an ending FIFO inventory of $250,000. The income tax rate is 40%. The controller of the company is considering a switch from FIFO to LIFO. He has determined that on a LIFO basis, the ending inventory would have been $180,000.