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! Required information E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO L07-2,7-3 The following information applies to the questions displayed
! Required information E7-7 (Algo) Analyzing and Interpreting the Financial Statement Effects of LIFO and FIFO L07-2,7-3 The following information applies to the questions displayed below) Emily Company uses a periodic inventory system. At the end of the annual accounting period, December 31 of the current year , the accounting records provided the following information for product 2: Units 2,900 Unit Cost $13 Inventory, December 31, prior year For the current year: Purchase, April 11 Purchase, June 1 Sales ($58 each) Operating expenses (excluding income tax expense! 8,910 7,870 10,870 14 19 $185,588 E7-7 Part 2 2. Compute the difference between the pretex Income and the ending inventory amount for the two cases, Comparison of Amounts Caso A Case B FIFO LIFO Difference Pretax income Ending inventory
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