The Hasting Company began operations on January 1, 2013 and uses theFIFO method in costing its raw material inventory. An analyst is wondering what net income would have been if the company had consistently followed LIFO (instead of FIFO) from the beginning, 1/1/2013. He has the following information available to him:What would net income have been in 2014 if Hastings had used LIFO since 1/1/2013?a) -$ 110,000 b) -$ 150,000 c) -$ 170,000 d) -$ 230,000

b) $ 150,000

Explanation:

Calculation of Hasting Company net income in 2014

ParticularsAmount ($)

Pretax Income under FIFO for 2014170,000

Less:

12/31/2014 Final Inventory under FIFO 270,000

Add:

12/31/2014 Final Inventory under LIFO 210,000

Add:

12/31/2013 Final Inventory under FIFO 240,000

Less:

12/31/2013 Final Inventory under LIFO 200,000

Pretax Income under LIFO for 2014150,000

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.