Question 3

Company XYZ switched from LIFO inventory to FIFO during the year. The pretax income data under each method is the following:

1) FIFO: $210,000 in 2020; $135,000 in 2019; $142,500 in 2018

2) 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.

Question 4

Company XYZ had the following information during the year:

1. Sales revenue of $500,000.

2. Cost of goods sold of $38,000.

3. Operating expenses of $85,200.

4. Unrealized holding gain from available-for-sale securities of $12,500.

5. Foreign currency translation losses of $2,210.

6. Cash holdings of $101,150.

7. Beginning retained earnings of $21,000.

8. Beginning accumulated other comprehensive income of $32,000.

Compute (1) net income, (2) other comprehensive income, (3) comprehensive income, and (4) accumulated other comprehensive income.