Business, 27.06.2020 23:01, IntellTanito
Tamarisk Company began operations in 2018 and for simplicity reasons, adopted weighted-average pricing for inventory. In 2020, in accordance with other companies in its industry, Tamarisk changed its inventory pricing to FIFO. The pretax income data is reported below.
Year Weighted-Average FIFO
2018 $373,800 $403,300
2019 391,900 434,700
2020 412,800 471,500
A) What is Cullumber’s net income in 2017? Assume a 35% tax rate in all years.
B) Compute the cumulative effect of the change in accounting principle from weighted-average to FIFO inventory pricing.
C) Show comparative income statements for Cullumber Company, beginning with income before income tax, as presented on the 2017 income statement.
Answers: 1
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Tamarisk Company began operations in 2018 and for simplicity reasons, adopted weighted-average prici...
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