If cost of goods sold under FIFO was $8,000 and was $10,000 under LIFO, assuming a tax rate of 40%, how much tax savings resulted from using LIFO?
a. There would be no tax savings.
b. $ 800
c. $ 1,200
d. $ 2,000
b
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Which of the following is a control risk related to payroll?
A) theft of inventory by staff B) a dishonest employee cashing a paycheck that was written to a fictitious person C) expenses being recorded as assets in order to manipulate earnings D) contracts being awarded to relatives of employees
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