Kante Company uses periodic FIFO for its internal report and periodic LIFO for its external reports. In its FIFO-based internal reports, Kante had a beginning inventory of $96,000, an ending inventory of $116,000, and a pretax income of $750,000. Under LIFO, Kante's beginning inventory would have been $78,000, and its ending inventory would have been $109,000. How much pretax income would Kante report in its external reports?
Kante Company uses periodic FIFO for its internal report and periodic LIFO for its external reports. In its FIFO-based internal reports, Kante had a beginning inventory of $96,000, an ending inventory of $116,000, and a pretax income of $750,000. Under LIFO, Kante's beginning inventory would have been $78,000, and its ending inventory would have been $109,000. How much pretax income would Kante report in its external reports?
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter7: Inventories: Cost Measurement And Flow Assumptions
Section: Chapter Questions
Problem 3RE: Reid Company uses the periodic inventory system. On January 1, it had an inventory balance of...
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Kante Company uses periodic FIFO for its internal report and periodic LIFO for its external reports. In its FIFO-based internal reports, Kante had a beginning inventory of $96,000, an ending inventory of $116,000, and a pretax income of $750,000. Under LIFO, Kante's beginning inventory would have been $78,000, and its ending inventory would have been $109,000. How much pretax income would Kante report in its external reports?
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