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Required information [The following information applies to the questions displayed below.] Income is to be evaluated under four different situations as follows: a. Prices are
Required information [The following information applies to the questions displayed below.] Income is to be evaluated under four different situations as follows: a. Prices are rising: (1) Situation A: FIFO is used. (2) Situation B: LIFO is used. b. Prices are falling: (1) Situation C: FIFO is used. (2) Situation D: LIFO is used. The basic data common to all four situations are sales, 506 units for $17,204; beginning inventory, 293 units; purchases, 394 units; ending inventory, 181 units; and operating expenses, $4,000. The income tax rate is 35%. equired: Complete the following tabulation for each situation in Situations A and B (prices rising), assume the following: beginning iventory, 293 units at $10=$2,930; purchases, 394 units at $11=$4,334. In Situations C and D (prices falling), assume the pposite; that is, beginning inventory, 293 units at $11=$3,223; purchases, 394 units at $10=$3,940. Use periodic inventory rocedures. (Round your answers to nearest dollar amount.)
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