问题
单项选择题
A company uses LIFO and had a 2006 LIFO reserve of $ 90000 and a 2005 LIFO reserve of $ 85000. The company' s marginal tax rate is 28% and cost of goods sold is $100000 for 2006. The change in 2006 net income if FIFO inventory costing had been used is:
A．
| A. - $ 3600. |
B．
| B. - $1200. |
C．
| C. $ 3600. |
答案
参考答案：C
解析：The LIFO reserve went up 90 - 85 = + 5, so switching to FIFO will decrease COGS by 5000, which will increase gross profit by 5000 and net income by (5000)×(1 -0.28) = +3600.