Question
During 2020, Wildhorse Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2019 and 2018 ( Wildhorses first year of operations) under FIFO
During 2020, Wildhorse Company changed from FIFO to weighted-average inventory pricing. Pretax income in 2019 and 2018 ( Wildhorses first year of operations) under FIFO was $ 171,740 and $ 196,820, respectively. Pretax income using weighted-average pricing in the prior years would have been $ 161,300 in 2019 and $ 179,700 in 2018. In 2020, Wildhorse reported pretax income (using weighted-average pricing) of $ 209,500. Show comparative income statements for Wildhorse, beginning with Income before income tax, as presented on the 2020 income statement. (The tax rate in all years is 30%.)
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