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Brief Exercise 4-06 During 2020, Novak Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2019 and 2018 (Novak's first year of operations)
Brief Exercise 4-06 During 2020, Novak Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2019 and 2018 (Novak's first year of operations) under FIFO was $163,790 and $193,590, respectively. Pretax income using weighted-average pricing in the prior years would have been $159,000 in 2019 and $190,200 in 2018. In 2020, Novak reported pretax income (using weighted- average pricing) of $212,200. Show comparative income statements for Novak, beginning with "Income before income tax," as presented on the 2020 income statement. (The tax rate in all years is 30%.) Income before income tax Income tax Net Income 2020 2019 A 2018 Question Attempts: 0 of 10 used
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