Question: 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

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:

...5 units@$155 775 8 units 156$1,248 13 units 165$2,145 Jan 1 Beginning inventory 15 Purchse... 26 Purchase.

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