Gg inc uses lifo gg disclosed that if fifo had been

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Accounting Using Excel for Success
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Chapter 7 / Exercise 01
Accounting Using Excel for Success
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104. GG Inc. uses LIFO. GG disclosed that if FIFO had been used, inventory at the end of 2009 would have been $15 million higher than the difference between LIFO and FIFO at the end of 2008. Assuming GG has a 40% income tax rate: A. Its reported cost of goods sold for 2009 would have been $9 million higher if it had used FIFO rather than LIFO for its financial statements.B. Its reported cost of goods sold for 2009 would have been $15 million higher if it had used FIFO rather than LIFO for its financial statements.C.Its reported net income for 2009 would have been $9 million higher if it had used FIFO rather than LIFO for its financial statements.D. Its reported net income for 2009 would have been $15 million higher if it had used FIFO rather than LIFO for its financial statements.This is (1 tax rate) the pre-tax effect of $15 million.
AACSB: AnalyticBlooms: SynthesisLearning Objective: 6Level of Learning: 3105. HH Company uses LIFO. HH disclosed that if FIFO had been used, inventory at the end of 2009 would have been $20 million lower than the difference between LIFO and FIFO at the end of 2008. Assuming HH has a 30% income tax rate:
AACSB: AnalyticBlooms: ApplicationLearning Objective: 6Level of Learning: 38-42
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Accounting Using Excel for Success
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Chapter 7 / Exercise 01
Accounting Using Excel for Success
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Chapter 008 Inventories: Measurement106. During 2009, WW Inc. reduced its LIFO eligible inventory quantities due to a problem with its major supplier. The effect of this liquidation was to increase its cost of goods sold by approximately $50 million. WW has a 40% income tax rate. If WW had not experienced these supplier problems and the resulting liquidation,

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