Carolina Company uses the LIFO method for valuing its ending inventory. The following financial statement information is available for its first year of operation:
Carolina Company
Income Statement
For the year ended December 31
Sales 60,000
Cost of Goods sold 23,000
Gross Profit 37,000
Expenses 13,000
Income before taxes $ 24,000
Carolina's ending inventory using the LIFO method was $8,700. Carolina's accountant determined that had the company used FIFO, the ending inventory would have been $9,100.
a. Determine what the income before taxes would have been, had Carolina used the FIFO method of inventory valuation instead of LIFO.
b. What would be the difference in income taxes between LIFO and FIFO, assuming a 30% tax rate?
c. If Carolina wanted to lower the amount of income taxes to be paid, which method would it choose?
Answers: 1
Business, 21.06.2019 20:30
Which of the following statements is correct? a) one drawback of forming a corporation is that it generally subjects the firm to additional regulationsb) one drawback of forming a corporation is that it subjects the firms investors to increased personal liabilitiesc) one drawback of forming a corporation is that it makes it more difficult for the firm to raise capitald) one advantage of forming a corporation is that it subjects the firm's investors to fewer taxese) one disadvantage of forming a corporation is that it is more difficult for the firm's investors to transfer their ownership interests
Answers: 1
Business, 22.06.2019 15:20
On january 2, 2018, bering co. disposes of a machine costing $34,100 with accumulated depreciation of $18,369. prepare the entries to record the disposal under each of the following separate assumptions. exercise 8-24a part 2 2. the machine is traded in for a newer machine having a $50,600 cash price. a $16,238 trade-in allowance is received, and the balance is paid in cash. assume the asset exchange has commercial substance.
Answers: 2
Business, 22.06.2019 17:40
Adamson company manufactures four lines of garden tools. as a result of an activity analysis, the accounting department has identified eight activity cost pools. each of the product lines is produced in large batches, with the whole plant devoted to one product at a time. classify each of the following activities or costs as either unit-level, batch-level, product-level, or facility-level. activities (a) machining parts. (b) product design. (c) plant maintenance. (d) machine setup. (e) assembling parts. (f) purchasing raw materials. (g) property taxes. (h) painting.
Answers: 2
Business, 22.06.2019 21:20
Which of the following best describes vertical integration? a. produce goods or services previously purchasedb. develop the ability to produce products that complement the original productc. develop the ability to produce the specified good more efficiently than befored. build long term partnerships with a few supplierse. sell products to a supplier or a distributor
Answers: 2
Carolina Company uses the LIFO method for valuing its ending inventory. The following financial stat...
Mathematics, 13.09.2020 05:01
English, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Biology, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Physics, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01
Mathematics, 13.09.2020 05:01