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1.Assume that purchases were at $12 per unit. Assume FIFO and then LIFO (columns 1 and 2). 2.Assume that purchases were at $8 per unit.
- 1.Assume that purchases were at $12 per unit. Assume FIFO and then LIFO (columns 1 and 2).
- 2.Assume that purchases were at $8 per unit. Assume FIFO and LIFO (columns 3 and 4).
- 3.Assume Omaha Fertilizer is reporting for tax purposes and has an income tax rate of 35%. Suppose all transactions are for cash.
- a.Which inventory method in number 1 results in more cash for Omaha Fertilizer Company?By how much?
- b.Which inventory method in number 2 results in more cash for Omaha Fertilizer Company?By how much?
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
7th Edition
0273658492, 978-0273658498
