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5) Nueva Company reported the following pretax data for its first year of operations. $) Net sales Cost of goods available for sale Operating expenses

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5) Nueva Company reported the following pretax data for its first year of operations. $) Net sales Cost of goods available for sale Operating expenses 7,340 5,790 1,728 40% Effective tax rate Ending inventories: If LIFO is elected If FIFO is elected 618 798 What is Nueva's net income if it elects FIFO? A) $372 B) S264 C) $620. D) $440 6) Inventory records for Herb's Chemicals revealed the following 6) March 1, 2018, inventory: 1,000 gallons@$7.20-$7,.200 Sales Mar. 5 600 gals s 7.25 800 gals 7.30 600 gals s 7.35 Mar. 10 400 gals Mar 14700 gals Mar. 20 500, gals Mar. 26 700 gals Mar. 16 Mar. 23 Ending inventory assuming LIFO in a periodic inventory system would be B) $5,040 C)$5,075. D) $5,055 A) S5,135. 7) On January 1, 2018, Badger Inc. adopted the dollar-value LIFO method. The inventory 7 cost on this date was $100,000. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below Ending inventory at year-end costs S 126,000 130,000 153,600 Cost Index 1.05 Year-end 2018 2019 2020 1.10 1.20 What inventory balance should Badger report on its 12/31/2018 balance sheet? B) $120,000 D) $126,000 C) S121,000 A) $100,000

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