Oates Inc. has beginning inventory of 100,000 units (cost of $15 per unit) accounted for...
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Accounting
Oates Inc. has beginning inventory of 100,000 units (cost of $15 per unit) accounted for using the LIFO inventory method. During the year, the company sold more items than purchased, causing the ending inventory balance to drop to 65,000 units. Assuming a tax rate of 25%, and a current replacement cost of inventory of $28 per unit, what is the LIFO liquidation effect on after-tax income?
$341,250
$455,000
None of these
$113,750
$633,750
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