Question
During 2020, Whispering Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2019 and 2018 (Whisperings first year of operations) under FIFO was
During 2020, Whispering Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2019 and 2018 (Whisperings first year of operations) under FIFO was $165,720 and $195,350, respectively. Pretax income using weighted-average pricing in the prior years would have been $165,500 in 2019 and $188,100 in 2018. In 2020, Whispering reported pretax income (using weighted-average pricing) of $205,100. Show comparative income statements for Whispering, 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 |
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