This is a sample question from p325 of the textbook:
I thought the tax savings should be:
2139x36% + 1924x 28%
as under the FIFO method,
Why the change in LIFO reserve of 215 was used in the answer?
Doesn’t the question ask about the total tax savings under LIFO, which is the tax savings in 2016 and 2017 in total?
Thank you very much for any insight!