A firm using FIFO had a beginning inventory of $48,000, an ending inventory of $56,000, and a pretax income of $400,000 . If it had used LIFO, its beginning inventory would have been $20,000, its ending inventory would have been $16,000, and its pretax income would have been:
a. $374,000
b. $388,000
c. $396,000
d. $404,000
e. $412,000
B
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If the portions of the firm's foreign operations in higher-tax-rate countries grew more rapidly than foreign operations in lower-tax-rate countries, the company may seek out more tax effective ways of operating abroad through all of the following means except:
a. Assess whether transfer prices or cost allocations can be adjusted to shift income from high-tax-rate to low-tax-rate jurisdictions. b. Shift from domestic to foreign borrowing to increase deductions for interest against foreign-source income. c. Shift from debt to equity financing of foreign operations to increase interest deductions against foreign-source income. d. Shift some operations, like marketing, to the United States where the average tax rate is lower.
All of the following are classified as definitely determinable liabilities except
A) sales tax payable. B) estimated property tax payable. C) the current portion of long-term debt. D) unearned revenue.
Royalties resulting from a non-trade or non-business activity should be reported on a Schedule E.
Answer the following statement true (T) or false (F)
The ________ is a federal statute, passed in 1975, that regulates written warranties on consumer products
A) Purchaser's Act B) Industry Loss Warranty Act C) Magnuson-Moss Warranty Act D) Consumer Warranty Act