Question
The following is the Balance Sheet and Income Statement for Ella Corp: LIFO BALANCE SHEET AT 12/31/2024: Assets Liabilities & Owners Equity Cash and Cash
The following is the Balance Sheet and Income Statement for Ella Corp:
LIFO BALANCE SHEET AT 12/31/2024:
Assets |
| Liabilities & Owners Equity |
|
Cash and Cash Equivalents | $1,000 | Accounts Payable | $3,000 |
Accounts Receivable, Net | $1,000 | Notes Payable | $4,000 |
Inventory | $8,000 | Common Stock | $13,000 |
PPE, Net | $20,000 | Retained Earnings | $10,000 |
TOTAL ASSETS | $30,000 | TOTAL LIAB. & OWNERS EQUITY | $30,000 |
LIFO INCOME STATEMENT FOR THE YEAR ENDING 12/31/2024:
Sales Revenue | $60,000 |
CGS | ($40,000) |
Gross Margin | $20,000 |
Other Gains/(Losses) | ($11,000) |
Pre-Tax Income | $9,000 |
Tax Expense (35%) | ($3,150) |
Net Income | $5,850 |
From its inception, Ella Corp. used LIFO to value its inventory. The LIFO reserve at 1/1/2024 is $500 and the LIFO reserve at 12/31/2024 is $1,200. You may assume that taxes are always 35% and all taxes are paid in cash.
___________________
If, from its inception, Ella Corp. has used FIFO to value its inventory instead of LIFO, what would Ella Corp. reports as 12/31/2024 Net Income?
Question 38 options:
$5,305 | |||||||||||||||||||||||||||||||||||||||||
$5,850 | |||||||||||||||||||||||||||||||||||||||||
$6,850 | |||||||||||||||||||||||||||||||||||||||||
$6,305
Assume Kelly Co. provides the following information regarding Dollar Value LIFO, which the company began applying in 2025:
You may round all answers to the nearest dollar. ___________________ What is the dollar-value LIFO balance at 12/31/2026? Question 39 options:
Question 40 (5 points)
Assume Kelly Co. provides the following information regarding Dollar Value LIFO, which the company began applying in 2025:
You may round all answers to the nearest dollar. ___________________ What is the dollar-value LIFO balance at 12/31/2027? Question 40 options:
|
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