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monitta
3 years ago
5

Anka Company uses the LIFO inventory costing method for both its tax reporting purposes and its financial reporting purposes. An

ka Company’s inventories are reported at $1,004 million on its balance sheet. In its footnotes, Anka Company is required to report the amount at which inventories would have been reported under FIFO method. The difference between these two numbers is commonly referred to as what? A. LCM disclosures B. LIFO holding gain C. LIFO liquidation D. LIFO reserve
Business
1 answer:
katovenus [111]3 years ago
4 0

Answer:

C. LIFO liquidation

Explanation:

Benson Company uses the LIFO inventory costing method for both its tax reporting purposes and its financial reporting purposes. In its footnotes, Benson Company is required to report the amount at which inventories would have been reported under FIFO method.

The difference between these two numbers is commonly referred to as LIFO Reserve.

LIFO reserve represents the difference in ending inventory using LIFO and ending inventory if FIFO were employed instead.

Third option is the correct option.

LIFO reserve = FIFO inventory cost - LIFO inventory cost

FIFO inventory cost = LIFO inventory cost + LIFO reserve

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Hemingway Corporation has 100,000 shares of common stock issued and outstanding. At the meeting of the board of directors on Dec
DaniilM [7]

Answer:

See the journal entry below

Explanation:

Retained earnings A/c Dr $500,000

Dividends payable A/c Cr $500,000

Here, cash dividend is being declared by the board on 100,000 shares hence the account of retained earnings is debited and account of dividends payable is credited.

NB.

Amount = Share × Price per share

Given that;

Share = 100,000

Price per share = $5

Amount

= 100,000 × $5

= $500,000

4 0
3 years ago
Option 1
agasfer [191]

Answer:

option 2 sorry if wrong

6 0
3 years ago
The local bank just invested a lot of money into hiring a professional decorator to redo the lobby area to make it more inviting
Digiron [165]
I feel like the answer is D
5 0
3 years ago
Rhombus corp. is a rapidly growing company that just experienced a very profitable quarter. the company's board of directors has
marissa [1.9K]
<span>This shows that the board has decided to re-invest the profits in the business instead of paying it to common shareholders. This is one of the drawbacks of owning common stock in comparison to preferred stock. Dividends and other company earnings are not always shared with the stockholder.</span>
3 0
3 years ago
Free Spirit Industries Inc.’s marketing sales director doesn’t think that the market for the firm’s goods is big enough to sell
RSB [31]

Answer:

In the attached the fixed costs is $12,000,000

selling price is $41.50

variable cost is $12.80

The price for the target EBIT of $15 million is $167.09

Explanation:

target units=fixed costs+target EBIT/selling price-variable cost

target units is 175,000

fixed costs of $12,000,000

target EBIT of $15,000,000

variable cost is $12.80

selling price is unknown,let assume is X

175,000=($12,000,000+$15,000,000)/X-12.80

175,000=27,000,000/X-12.80

175,000*(X-12.80)=27,000,000

X-12.80=27,000,000/175,000

X-12.80=154.29

X=154.29+12.80

X=$167.09

EBIT=Sales units*(selling price-variable cost)-fixed costs

Download xlsx
6 0
3 years ago
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