Question
Asked Feb 15, 2019
151 views

12. A firm using FIFO had a beginning inventory of $48,000, an ending inventory of $56,000,
and a pretax income of $400,000. If it had used LIFO, its beginning inventory would have been
$20,000, its ending inventory would have been $16,000, and its pretax income would have been:
a. $374,000
b. $388,000
c. $396,000
d. $404,000

check_circle

Expert Answer

Step 1

Calculate pre-tax income for LIFO a...

fullscreen

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in

Business

Accounting

Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A
add
question_answer

Q: Why are cash equivalents included with cash in a statement of cash flows?

A: Cash equivalents: Instead of keeping idle cash during high interest rates, the companies invest cash...

question_answer

Q: What are the three major types of activities classified on a statement of cash flows? Give an exampl...

A: Cash flow statement Cash flow statement shows the summary of all inflows and outflows of cash in a b...

question_answer

Q: On January 2, 2018 JC Corporation acquired a new machine with an estimated useful life of five years...

A: Given:Cost of equipment = $400,000Salvage Value       = $5,000Useful Life of Asset = 5 years Depreci...

question_answer

Q: Andretti Company has a single product called a Dak. The company normally produces and sells 85,000 D...

A: Incremental cost: Incremental cost refers to the cost incurred in producing an additional unit, in o...

question_answer

Q: Carmen had worked for Sparrow Corporation for thirty years when she died of a heart attack at age 60...

A: In favour of the first question regarding whether the payments made by Sparrow Corporation must be t...

question_answer

Q: Required information Problem 14-44 (LO 14-2) [The following information applies to the questions dis...

A: Dividend Income:It refers to any allocation of company incomes to shareholders from stocks or mutual...

question_answer

Q: The Selling Division’s unit sales price is $34 and its unit variable cost is $15. Its capacity is 11...

A: Opportunity: This is one of the factors of fraud triangle which explains about the chances an employ...

question_answer

Q: Platt Company produces one product, a putter called PAR –putter. Platt uses a standard cost system a...

A: Compute the predetermined variable overhead rate: 

question_answer

Q: Affordable Lawn Care, Inc., provides lawn mowing services to both commercial and residential custome...

A: Prepare an income statement, statement of retained earnings and balance sheet of Incorporation A for...