The CRS group uses LIFO accounting. The year 1 and year 2 LIFO reserves are $12300 and $14000 respectively. Present inventory replacement cost is $25800 and the effective tax rate is 35%. At the end of both years was reported: ____________________Year 1_________ Year 2 Cash_________________$3500_______$2500 Inventory_____________$10200______$9300 What amount would the company have reported as the ending inventory balance for Year 2 if it had used FIFO accounting? A)$18400 B)$21600 C)$23300 D)$25800
9300 + 14000 = 23300
C
C correct.