Alpha Inc. uses LIFO and has experienced increasing costs since it started. Alpha disclosed $4 million of LIFO reserve at the end of 20X1. It has $24 million of ending inventory at the end of 20X1. If Alpha had always used FIFO, what would the ending inventory have been?  How much is Alpha's tax saving as a result of using LIFO if its income tax rate is 25%?

Answer rating: 100% (QA)

To calculate the ending inventory under the FIFO method and determine the tax saving as a result of ... View the full answer