Business, 29.11.2019 02:31 Inrimid3619
Wolfgang kitchens has always used the fifo inventory costing method for both financial reporting and tax purposes. at the beginning of 2018, wolfgang decided to change to the lifo method. net income in 2018 was correctly stated as $90 million. if the company had used lifo in 2017, its cost of goods sold would have been higher by $7 million that year. company accountants are able to determine that the cumulative net income for all years prior to 2017 would have been lower by $23 million if lifo had been used all along, but have insufficient information to determine specific effects of using lifo in 2016. last year, wolfgang reported the following net income amounts in its comparative income statements:
col1 ($ in millions) 2017 2016 2015
col2 net income $ 94 $ 92 $ 90
required: 1. prepare the journal entry at the beginning of 2018 to record the change in accounting principle. (ignore income taxes.)
2. what amounts will wolfgang report for net income in its 2018–2016 comparative income statements?
Answers: 2
Business, 21.06.2019 13:00
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Business, 22.06.2019 12:00
In the united states, one worker can produce 10 tons of steel per day or 20 tons of chemicals per day. in the united kingdom, one worker can produce 5 tons of steel per day or 15 tons of chemicals per day. the united kingdom has a comparative advantage in the production of:
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Business, 22.06.2019 13:20
Suppose your rich uncle gave you $50,000, which you plan to use for graduate school. you will make the investment now, you expect to earn an annual return of 6%, and you will make 4 equal annual withdrawals, beginning 1 year from today. under these conditions, how large would each withdrawal be so there would be no funds remaining in the account after the 4th withdraw?
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Wolfgang kitchens has always used the fifo inventory costing method for both financial reporting and...
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