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Required information Compare the lower of cost or net realizable value effect on each amount that was changed on the income statement in requirement (
Required information Compare the lower of cost or net realizable value effect on each amount that was changed on the income statement in requirement Decreases should be indicated by a minus sign.Round your answers to nearest dollar amount.
tableItem Changed,tableFIFO CostBasistableLower of Costor NRVtableAmount ofChangeDecreaseEnding irventory,,,Cost of goods sold,,,Gross profit,,,Pretax income,,,Income tax expense,,,Net income,,,
The following information applies to the questions displayed below.
Jaffa Company prepared its annual financial statements dated December of the current year. The company applies the
FIFO inventory costing method; however, the company neglected to apply lower of cost or net realizable value to the
ending inventory. The preliminary current year income statement follows:
Assume that you have been asked to restate the current year financial statements to incorporate lower of cost or NRV You
have developed the following data relating to the current year ending inventory:
Required:
Prepare the income statement to reflect lower of cost or net realizable value valuation of the current year ending inventory. Apply
lower of cost or NRV on an itembyitem basis. Round your answers to nearest dollar amount.
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