# 12. A firm using FIFO had a beginning inventory of \$48,000, an ending inventory of \$56,000,and a pretax income of \$400,000. If it had used LIFO, its beginning inventory would have been\$20,000, its ending inventory would have been \$16,000, and its pretax income would have been:a. \$374,000b. \$388,000c. \$396,000d. \$404,000

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12. A firm using FIFO had a beginning inventory of \$48,000, an ending inventory of \$56,000,
and a pretax income of \$400,000. If it had used LIFO, its beginning inventory would have been
\$20,000, its ending inventory would have been \$16,000, and its pretax income would have been:
a. \$374,000
b. \$388,000
c. \$396,000
d. \$404,000

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Step 1

Calculate pre-tax income for LIFO a...

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