What is best estimate of the tax payments the company

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Question 1: If a company reports a beginning LIFO reserve of $100 and ending LIFO reserve of $120, the Cost of goods sold of this company is greater than it would have been had this company used the FIFO valuation method?

Question 2: If a company reports a beginning inventory LIFO reserve of $100 and ending inventory LIFO reserve of $120, has a cost of capital of 10% and a marginal tax rate of 25%, what is your best estimate of the tax payments the company has deferred as of the end of the year as a result of using the LIFO inventory valuation method?

Reference no: EM132887583

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