Libretto,Inc

Libretto,Inc.,uses the FIFO method and had ending inventory for 2010 of $35,000.If Libretto had used the LIFO method,its ending inventory would have been $32,000.Assume equal beginning inventories for the two methods.If Libretto had used the LIFO method instead of the FIFO method in 2010,how would its income before income tax have changed?

A) Decrease of $35,000
B) Increase of $35,000
C) Decrease of $3,000
D) Increase of $3,000

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