Question: Use the data for Rons, Inc., in Exercise to illustrate Rons income tax advantage from using LIFO over FIFO. Sales revenue is $8,750, operating expenses

Use the data for Ron€™s, Inc., in Exercise to illustrate Ron€™s income tax advantage from using LIFO over FIFO.

Sales revenue is $8,750, operating expenses are $2,000, and the income tax rate is 32%. How much in taxes would Ron€™s save by using the LIFO method versusFIFO?

May 1 Beginning inventory 15 Purchase 26 Purchase 7units @ $160= 6 units @ 160= $1,120 960 1,870 11 units @ 170

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