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How do I calculate Income tax expense for Average cost, FIFO, and LIFO. Duffy Print Supplies, Inc., sells laser printers and supplies. Duffy Print Supplies,
How do I calculate Income tax expense for Average cost, FIFO, and LIFO.
Duffy Print Supplies, Inc., sells laser printers and supplies. Duffy Print Supplies, Inc., is a corporation subject to a 25% income tax. A (Click the icon to view additional information.) Duffy Print Supplies' income statement-excluding the effects of income tax under each of the average-cost, FIFO, and LIFO inventory costing methodsis given. E(Click the icon to view the income statement.) Read the requirements. Compute the company's income tax expense under the average-cost, FIFO, and LIFO inventory costing methods. Duffy Print Supplies, Inc. Income Statement * More Info Year Ended December 31 Average Cost FIFO L IFO Assume Duffy started the year with 90 containers of ink (average cost of $9.20 Sales revenue 12,980 $ 12,980 $12,980 each, FIFO cost of $8.80 each, LIFO cost of $7.90 each). During the year, the 5,900 5,842 5,959 company purchased 720 containers of ink at $10.10 and sold 590 units for $22.00 Cost of goods sold each. Duffy paid operating expenses throughout the year, a total of $3,775. Gross profit 7,080 $ 7,138 $ 7,021 Operating expenses 3,775 3,775 3,775 Print Done Net income before tax 3,305 $ 3,363 $ 3,246 Income tax expenseStep by Step Solution
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