Question
Blue Company reported the following information in its financial statements. Blue Company (FIFO) $millions Sales COGS Inventories 2021 $60,000 $45,000 $15,000 2020 52,000 36,000 13,000
Blue Company reported the following information in its financial statements.
| Blue Company (FIFO) |
| |||||
| $millions | Sales | COGS | Inventories |
|
|
|
| 2021 | $60,000 | $45,000 | $15,000 |
|
|
|
| 2020 | 52,000 | 36,000 | 13,000 |
|
|
|
The LIFO reserve for Blue Company is $2,760 at the end of 2020 and $2,500 at the end of 2021. What is the 2021 gross profit for Blue Company, assuming Blue Company had used LIFO?
Select one:
a. $15,000
b. $14,260
c. $14,740
d. $15,260
e. $15,740
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Taxation Of Individuals And Business Entities 2015
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
6th Edition
978-1259206955, 1259206955, 77862368, 978-0077862367
