In 2017 dom sold 200 shrubs in 2018 dom purchased

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In 2017, Dom sold 200 shrubs. In 2018, Dom purchased three more batches of shrubs at the following total cost per batch below. Throughout 2018, he also sold 50 shrubs: Shrubs Purchase Date Total Cost 100 Early spring $ 2,400 125 Summer $ 2,500 100 Fall $ 2,600 a. ( 10 points ) What cost of goods sold and ending inventory would Dom record if he elects to use the LIFO method in 2017? b. ( 10 points ) What will be his cost of goods sold and ending inventory in 2018 under the LIFO method? c. ( 10 points ) How would you answer (a) change if Dom had initially selected the first- in, first-out (FIFO) method instead of LIFO? d. ( 10 points ) How would you answer (b) change if Dom had initially selected the first- in, first-out (FIFO) method instead of LIFO? 2. A local McDonald’s is operated as a franchise (treated as a separate taxable entity from McDonald’s Corporation as a whole). During 2017, the local franchise had $300,000 in cash sales and the following cash expenditures: Rental cost of restaurant venue ($2,000 per month, starting March. 1, 2017) $24,000 Franchise fee for 2017 (fully deductible) $30,000 Compensation for 2017 $53,000 Utilities for 2017 $9,500 In addition to the above, the owner contracted with a supplier to provide all the cleaning supplies for the location over a 12 month period starting on March 1, 2017. The owner paid $6,000 (the total cost for the contract) on April 1, 2017, and the same amount of supplies was brought in from the supplier each month. Finally, the owner paid the McDonald’s Corporation a royalty fee at 6% of store sales for the 2017 year on December 30, 2017. a. ( 8 points ) Assuming the local McDonald’s operates on a calendar year-end under the accrual method , what amount of net profit (loss) for the business was included in AGI for 2017? b. ( 8 points ) Assuming the local McDonald’s operates on a calendar year-end under the cash method , what amount of net profit (loss) for the business was included in AGI for 2017? 3. John Deere received an order for a $12,000 tractor from a customer on June 30, 2017 and delivered the tractor to the customer on July 31, 2017. The company sent the customer

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