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ABC company uses LIFO for financial reporting purposes and FIFO for internal reporting purposes. Its...

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Accounting

ABC company uses LIFO for financial reporting purposes and FIFO for internal reporting purposes. Its LIFO reserve balance is $70,000 as of 12/31/2011 and $170,000 as of 12/31/2012. Its reported net income (LIFO) is $1,000,000 for fiscal year 2012. Assume tax rate is 40%, what would the company's net income in 2012 be should the company used FIFO method?

1,006,000

1,060,000

994,000

940,000

I do not know

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