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(Learning Objective 2: Compare the tax advantage o

(Learning Objective 2: Compare the tax advantage of LIFO over FIFO) Use the data for Nashville Sales, Inc., in E6-25B to illustrate Nashville Sales’ income tax advantage from using LIFO over FIFO. Sales revenue is $9,775, operating expenses are $3,800, and the income tax rate is 40%. How much in taxes would Nashville Sales save by using the LIFO method versus FIFO?

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