Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

During 2020, Blue Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2019 and 2018 (Blues first year of operations) under FIFO was

During 2020, Blue Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2019 and 2018 (Blues first year of operations) under FIFO was $163,560 and $186,350, respectively. Pretax income using weighted-average pricing in the prior years would have been $152,200 in 2019 and $180,800 in 2018. In 2020, Blue reported pretax income (using weighted-average pricing) of $214,600. Show comparative income statements for Blue, beginning with Income before income tax, as presented on the 2020 income statement. (The tax rate in all years is 30%.)

2020

2019

2018

Income before income tax

$enter a dollar amount

$enter a dollar amount

$enter a dollar amount

Income tax

enter a dollar amount

enter a dollar amount

enter a dollar amount

Net Income

$enter a total of the two previous amounts

$enter a total of the two previous amounts

$enter a total of the two previous amounts

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Statistical Sampling And Risk Analysis In Auditing

Authors: Peter Jones

1st Edition

1138263214, 978-1138263215

More Books

Students also viewed these Accounting questions

Question

Identify the types of informal reports.

Answered: 1 week ago

Question

Write messages that are used for the various stages of collection.

Answered: 1 week ago