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Unformatted text preview: Sub-Total = 331,633 10,000 increase in LIFO recapture amount (3,000) payment on installment sales Total E&P = 338,633 Sparrow uses the LIFO inventory method, and its LIFO recapture amount increased by $ 10,000 during 2011. In addition, Sparrow sold property on installment during 2010. The property was sold for $ 40,000 and had an adjusted basis at sale of $ 32,000. During 2011, Sparrow received a $ 15,000 payment on the installment sale. Finally, assume that Sparrow elected to amortize qualified organizational expenses during 2010 and that no additional first- year depreciation was claimed. Compute Sparrow s current E & P....
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This note was uploaded on 02/22/2012 for the course ACCT 467 taught by Professor Ruhupatty during the Spring '12 term at Andrews Univeristy.
- Spring '12