Question
Company XYZ switched from LIFO inventory to FIFO during the year. The pretax income data under each method is the following: FIFO: $210,000 in 2020;
Company XYZ switched from LIFO inventory to FIFO during the year. The pretax income data under each method is the following:
- FIFO: $210,000 in 2020; $135,000 in 2019; $142,500 in 2018
- LIFO: $189,000 in 2020; $111,500 in 2019; $138,000 in 2018
What net income amount did the company report in 2018? 2020? Assume a tax rate of 30%. Prepare the comparative income statements for the company in 2020.
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Financial Accounting An Introduction
Authors: Alex Watson, Jacqui Kew
5th Edition
0190425520, 978-0190425524
