Use the data for Bright Sales Inc in E6 12A to
Use the data for Bright Sales, Inc., in E6-12A to illustrate Bright Sales, Inc.’s income tax advantage from using LIFO over FIFO. Sales revenue is $10,200, operating expenses are $3,400, and the income tax rate is 28%. How much in taxes would Bright Sales, Inc., save by using the LIFO method versus FIFO?
In E6-12A, Bright Sales, Inc.’s inventory records for a particular development program show the following at January31:
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