A. Included in parchases B. Added to accounts payable C Included in D. Deducted

Question

A. Included in parchases B. Added to accounts payable C Included in D. Deducted from discount income E. None of the above 28. If a company uses LIFO, a LIFO liquidation causes a company's income tases to increase A. When inventory purchase costs are ri B When invensory purchase costs are declining C. Whether inventory purchase costs ane declining ee rising D LIFO liquidations have so efflect on a company's income taves. E None of the above 29. Data relatod to the inventories of Costoo Modical Supply are presenmed below SurgicalSugical Rehab Rehab Equipment Sigplies Equipment lies Selling price Costs to sell In applying the lower of cost or net realizable valae nule, the inventory of surgical supplies would be valued S 260 170 s 100 S 340 165 162 10 A. $100 B. $90 C. S85 D. $75 E. None of the above 30. In applying LCM, market cannot be: A. Less than net realizable valuc. B. Greater than the mormal profit C. Less than the normal profit margin D. Greater than net realizable value. E. None of the above.

Explanation / Answer

28) Option a) When inventory purchase prices are rising.

When inventory purchase prices are rising.LIFO will tend to increase the income tax of the company as the cost of goods sold will be more.

29) The lower cost will be 90 i.e. Option B

30) Option D

Greater than the net realizable value, as net realizable value is always lower than the market

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.