Accountants should be aware that LIFO liquidations can potentially result in which of the following?
a. If older less costly layers are liquidated, a correspondingly lower cost of goods sold will result.
b. If older less costly layers are liquidated, the company may be faced with higher taxes for those deferred in previous periods.
c. If older less costly layers are liquidated, a correspondingly higher gross profit will result.
d. All of these could result.
d
You might also like to view...
On september 1 their will be an 5% increase on the dental insurance premiums
What will be an ideal response?
Incremental analysis focuses on factors that change from one decision to another
Indicate whether the statement is true or false
Forming a union requires the support from a majority of the employees in a defined bargaining unit.
Answer the following statement true (T) or false (F)
Safina, a single taxpayer with an adjusted gross income of $100,000, works as a self-employed engineer. Safina incurs $8,000 of education expenses (tuition and books) and can deduct the $8,000 education expense: I.if the course improves her skills as an engineer but does not qualify her for a new trade or business.II.but it is not a deduction for adjusted gross income.?
A. Only statement I is correct. B. Only statement II is correct. C. Both statements are correct. D. None of the statements are correct.