LIFO Layer Liquidations and Net Income. The following information is taken from the annual report of The Claremont Corporation: (in millions) Year 2 Year 1 Net income before tax $368 $24 The company uses the LIFO method to value its inventory. In addition, the footnotes to the company's annual report revealed that, during Year 2 and Year 1, inventory usage resulted in liquidations of LIFO inventory quantities, and the effect of these liquidations was to reduce the cost of goods sold by $28 million and $6 million in Year 2 and Year 1, respectively. Calculate the company's net income before tax assuming that the LIFO inventory liquidations had not occurred. Year 2 Year 1 Restated net income Answer Answer
LIFO Layer Liquidations and Net Income. The following information is taken from the annual report of The Claremont Corporation: (in millions) Year 2 Year 1 Net income before tax $368 $24 The company uses the LIFO method to value its inventory. In addition, the footnotes to the company's annual report revealed that, during Year 2 and Year 1, inventory usage resulted in liquidations of LIFO inventory quantities, and the effect of these liquidations was to reduce the cost of goods sold by $28 million and $6 million in Year 2 and Year 1, respectively. Calculate the company's net income before tax assuming that the LIFO inventory liquidations had not occurred. Year 2 Year 1 Restated net income Answer Answer
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 9P: LIFO Liquidation Profit Hammond Company adopted LIFO when it was formed on January 1, 2017. Since...
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LIFO Layer Liquidations and Net Income.
The following information is taken from the annual report of The Claremont Corporation:
| (in millions) | Year 2 | Year 1 |
|---|---|---|
| Net income before tax | $368 | $24 |
The company uses the LIFO method to value its inventory. In addition, the footnotes to the company's annual report revealed that, during Year 2 and Year 1, inventory usage resulted in liquidations of LIFO inventory quantities, and the effect of these liquidations was to reduce the cost of goods sold by $28 million and $6 million in Year 2 and Year 1, respectively.
Calculate the company's net income before tax assuming that the LIFO inventory liquidations had not occurred.
| Year 2 | Year 1 | |
|---|---|---|
| Restated net income | Answer | Answer |
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