The excess of market value over the carrying value of inventories for which the LIFO method is used was $4,846, $3,036 and $2,106 at December31,...
View the step-by-step solution to:

Question

The excess of market value over the carrying value of inventories for which the LIFO method is used was $4,846,

$3,036 and $2,106 at December 31, 2005, 2004 and 2003, respectively. Market value is generally based on average acquisition costs for the year. LIFO profits of $34, $36 and $82 were included in net income for the years 2005, 2004 and 2003, respectively.


question: <Excess of replacement cost over the carrying value of inventories> is the LIFO reserve or LIFO profits on inventory drawdowns included in earnings is LIFO reserve

Top Answer

LIFO reserve is also termed as the excess of replacement cost over the... View the full answer

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question