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Question - ATW Corporation currently uses the FIFO method of accounting for its inventory for book and tax purposes. Its beginning inventory for the current year was $8,000,000. Its ending inventory for the current year was $7,000,000. If ATW had been using the LIFO method of accounting for its inventory, its beginning inventory would have been $7,000,000 and its ending inventory would have been $5,500,000.
Required - How much more in taxes did ATW Corporation pay for the current year because it used the FIFO method of accounting for inventory rather than the LIFO method?
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