Answered: The difference between LIFO and FIFO…

The difference between LIFO and FIFO valuation methods is $2,500. Given that the corporation pays a 35% tax rate, what is the savings to the organization to use the LIFO method of accounting.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter17: Corporations: Introduction And Operating Rules

Section: Chapter Questions

Problem 1BCRQ

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Concept explainers

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.

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The difference between LIFO and FIFO valuation methods is $2,500. Given that the corporation pays a 35% tax rate, what is the savings to the organization to use the LIFO method of accounting.

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