Score: 1.67 of 10 pts 1 of 2 (1 complete) HW Score: 8 33%, 1 E21-1 (book/static)

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Score: 1.67 of 10 pts 1 of 2 (1 complete) HW Score: 8 33%, 1 E21-1 (book/static) EQuestio Massi Pharmacies, Inc started operations on January 1,2011. The company initially used The following information is available for net income after tax for both the FIFO the average-cost method to value its inventory for both book and tax purposes. Effective average-cost methods January 1, 2015, Massi elected to change its inventory valuation method to the FIFO basis for financial reporting purposes. Massi stll uses the average-cost method on the company's tax returns. Massi is subject to a 35% tax rate. E (Click the icon to view net income after tax for both methods.) ue: ast Work urrent S ttemptsinventory Read the requirements. Accoum January 1, 2015 540,000 Attempts: i Net Income After Tax Table Retained Earnings Deferred Tax Liability 351,000 189,000 E21-1 Net Income Average Cost Requirement b. Prepare the partial comparative income statements for the three years ending De Year Ended December 31, 2011235,000 $ 310,000 December 31, 2012 300,000 376,000 December 31, 2013 310,000 $ 400,500 December 31, 2014 425,500 535,000 December 31,2015 500,000 $ 585,000 FIFO Massi Pharmacies, Inc. Comparative Income Statements (Partial) For the years ended December 31 see what OK 2014 Restated 2013 Restated 2015 Income before tax 585 35,000 400,500 s course (AC Income tax expense yright 2017Net income after tax Print Done Enter any number in the edit fields and then click Check Answer emaining Clear All Check Answer

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Massi Pharmacies Inc.

Massi Pharmacies Inc.

Comparative Income Satatements (Partial) For the years ended December 31 2015 2014 (Restated) 2013 (Restated) Income Before Tax        5,85,000         5,35,000        4,00,500 Income Tax Expense        2,04,750         1,87,250        1,40,175 Net Income After Tax 3,80,250         3,47,750        2,60,325

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