Question
In: Accounting
Income is to be evaluated under four different situations as follows: a. Prices are rising: (1)...
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, 517 units
for $18,612; beginning inventory, 295 units; purchases, 386 units;
ending inventory, 164 units; and operating expenses, $4,000. The
income tax rate is 30%.
Required: 1. Complete the following tabulation for each situation in Situations A and B (prices rising), assume the following: beginning inventory, 295 units at $11 = $3,245; purchases, 386 units at $12 = $4,632. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 295 units at $12 = $3,540; purchases, 386 units at $11 = $4,246.Use periodic inventory procedures.(Round your answers to nearest dollar amount.)
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Solutions
ekkarill92 answered 8 months agoRelated Solutions
Income is to be evaluated under four different situations as follows: a. Prices are rising: (1)...
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, 502 units
for $16,064; beginning inventory, 287 units; purchases, 388 units;
ending inventory, 173 units; and operating expenses, $3,100. The
income tax rate is 30%.
Required:
1....
Income is to be evaluated under four different situations as follows: a. Prices are rising: (1)...
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, 502 units
for $16,064; beginning inventory, 287 units; purchases, 388 units;
ending inventory, 173 units; and operating expenses, $3,100. The
income tax rate is 30%.
Required:
1....
(a) Under the Income Tax Ordinance, 2001 identify four situations under which an appeal may be...
(a) Under the Income Tax Ordinance, 2001 identify four
situations under which an appeal may be filed with the Commissioner
(Appeals). (04)
(b) Sadiq Ali has received an ex-parte assessment order from the
income tax department under which he is required to pay Rs. 5.2
million on account of tax not withheld from certain payments. He
does not agree with the contention of the income tax department and
would like to file an appeal to the Commissioner (Appeals).
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1. If the interest rate is rising and stock prices are
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Explain the impact of rising prices on the gross profit both under LIFO and FIFO. Provide...
Explain the impact of rising prices on the gross profit both
under LIFO and FIFO. Provide a numerical example to illustrate your
answer.
Financial information follows for four different companies:
Financial information follows for four different companies:
Ace Consulting Inc.
Brrrr Freezers Corp.
Capital Consumer Inc.
Death Star Ltd.
Sales Revenue
$98,000
(c)
$144,000
$120,000
Sales Returns and Allowances
(a)
$ 5,000
12,000
9,000
Net Sales Revenue
74,000
101,000
132,000
(g)
Beginning Inventory
21,000
(d)
44,000
24,000
Purchases
63,000
105,000
(e)
90,000
Returns and Allowances
6,000
10,000
8,000
(h)
Ending Inventory
(b)
48,000
30,000
28,000
Cost of Goods Sold
64,000
72,000
(f)
72,000
Gross Profit
10,000
29,000
18,000
(i)...
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