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Semico is a hybrid method taxpayer. In 2021, Semico earned cash revenue of $700,000, purchased $540,000 of inventory for ($490,000 for cash and $50,000 on
Semico is a hybrid method taxpayer. In 2021, Semico earned cash revenue of $700,000, purchased $540,000 of inventory for ($490,000 for cash and $50,000 on account), and had beginning inventory of $10,000 and ending inventory of $20,000. Ssemico must report taxable income of: a. $200,000 b. $190,000 c. $180,000 d. $170,000
Can you show the work on this problem, I am lost in how to answer the question. Thank you!
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