lOMoARcPSD|13497295 Inventories6 - 19 c.ending inventory of the companies will be identical. d.net income of the companies will be identical. Ans: B, LO: 2, Bloom: C, Difficulty: Easy, Min: 1, AACSB: None, AICPA BB: Industry/Sector Perspective, AICPA FN: Measurement, AICPA PC: None, IMA: Business Economic 108.The specific identification method of inventory costing
109.The accountant at Paige Company is figuring out the difference in income taxes the company will pay depending on the choice of either FIFO or average-cost as an inventory costing method. The tax rate is 30% and the FIFO method will result in income before taxes of $36,400. The average- cost method will result in income before taxes of $32,900. What is the difference in tax that would be paid between the two methods? a. $3,500. b.$1,500. c.$1,050. d.Cannot be determined from the information provided. Ans: C, LO: 2, Bloom: AP, Difficulty: Hard, Min: 3, AACSB: Analytic, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Measurement, AICPA PC: Problem Solving, IMA:
