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User Print Supplies, Inc., sells laser printers and supplies. McDonough Print Supplies, Inc., is a corporation subject to a 3 5 % income tax. LOADING...
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Print Supplies, Inc., sells laser printers and supplies. McDonough Print Supplies, Inc., is a corporation subject to a income tax.
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McDonough Print Supplies' income statementlong dashexcluding the effects of income tax under each of the averagecost FIFO, and LIFO inventory costing methodslong dashis given.
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Compute the company's income tax expense under the averagecost FIFO, and LIFO inventory costing methods.
McDonough Print Supplies, Inc.
Income Statement
Year Ended December
Average Cost
FIFO
LIFO
Sales revenue
$
$
$
Cost of goods sold
Gross profit
$
$
$
Operating expenses
Net income before tax
$
$
$
Income tax expense
Assume McDonough started the year with containers of inkaverage cost of $ each FIFO cost of $ each LIFO cost of $ each During the year, the company purchased containers of ink at $ and sold units for $ each. McDonough paid operating expenses throughout the year, a total of $ comma McDonough Print Supplies, Inc.
Income Statement
Year Ended December
Average Cost
FIFO
LIFO
Sales revenue
$
$
$
Cost of goods sold
Gross profit
Operating expenses
Net income before tax
$
$
$
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