Reference no: EM132584954

Wilson Copy Center sells laser printers and supplies. Wilson Copy Center started the year with 90 containers of ink? (average cost of $8.50 ?each, FIFO cost of $8.90 ?each, LIFO cost of $7.80 ?each). During the? year, Wilson Copy Center purchased 720 containers of ink at $10.30 and sold 580 units for $19.75 each. Wilson Copy Center paid operating expenses throughout the? year, a total of $5,500. Wilson Copy? Center's income statement-excluding the effects of income tax under each of the? average-cost, FIFO, and LIFO inventory costing methods- is given.

Question 1: Wilson Copy Center is a corporation subject to a 25?% income tax. Compute Wilson Copy Center's income tax expense under the? average, FIFO, and LIFO inventory costing methods. Which method would you select to? (a) maximize income before tax and? (b) minimize income tax? expense? ?(Round your answer to the nearest whole? dollar.)

Wilson Copy Center

Income Statement

Year Ended December 31

                                           Average Cost            FIFO                    LIFO

Sales revenue                     $ 11,455             11,455              11,455

Cost of goods sold                    5,858              5,848                5,974

Gross profit                              5,597                5,607             5,481

Operating expenses                     5,500                5,500          5,500

Net income before tax                   97                   107              (19)

Income tax expense (to be determined for each column)