Given the following inventory information about the Buckner Company:
- Year-end last in, first out (LIFO) inventory of $6,500.
- Year-end LIFO reserve of $2,500.
- The current year's LIFO cost of goods sold (COGS) is $15,000.
- After tax income is $1,600.
- The previous year's LIFO reserve was $2,000.
How much higher would the firm's retained earnings be on a first in, first out (FIFO) basis if the firm's tax rate is 40%?
A. $2,100.
B. $1,500.
C. $1,800.
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