Business, 31.12.2019 06:31, infinitexero1022
During 2018, 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
a. its 2018 net income would have been $30 million lower b/c inventory purchase prices were rising.
b. it`s 2018, net income would have been $30 million lower b/c inventory purchase prices were declining.
c its 2018,net income would have been $30 million higher because inventory purchase prices were rising.
d. its 2018, net income would have been $30 million higher b/c inventory purchase prices were declining.
Answers: 3
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