Question: Use the data for Arrow Corporation in E6-32B to illustrate Arrow's income tax advantage from using LIFO over FIFO. Sales revenue is $8,000, operating expenses

Use the data for Arrow Corporation in E6-32B to illustrate Arrow's income tax advantage from using LIFO over FIFO. Sales revenue is $8,000, operating expenses are $1,400, and the income tax rate is 30%. How much in taxes would Arrow Corporation save by using the LIFO method versus FIFO?

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