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Ad libitum [116K]
3 years ago
9

The accountant at Novak Corp. is figuring out the difference in income taxes the company will pay depending on the choice of eit

her FIFO or LIFO as an inventory costing method. The tax rate is 30% and the FIFO method will result in income before taxes of $21330. The LIFO method will result in income before taxes of $19800. What is the difference in tax that would be paid between the two methods? Cannot be determined from the information provided. $1530 $1071 $459
Business
1 answer:
Serhud [2]3 years ago
4 0

Answer:

$459

Explanation:

Computation of the given data are as follows:

Tax rate = 30%

Income before taxes (FIFO method) = $21,330

So, tax amount = $21,330 × 30%

= $6,399

Income before taxes (LIFO method) = $19,800

So, tax amount = $19,800 × 30%

= $5,940

So, we can calculate the difference in taxes by using following formula:

Difference in Tax = $6,399 - $5,940

= $459

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What may happen if your job does not require you to use the aptitudes you possess?​
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3 years ago
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3 years ago
Ramsay, the ceo of a large corporation, was indicted for tax fraud. the government accused him of hiding a vast amount of the co
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3 years ago
The beginning and ending finished goods inventories of the Prize Ring manufacturing company were $84,000 and $79,750 respectivel
VLD [36.1K]

Answer:

$67,150

Explanation:

The computation of cost of goods manufactured for this period is shown below:-

Cost of goods sold = Beginning finished goods + Cost of goods manufactured - Ending finished goods

$71,400 = $84,000 + Cost of goods manufactured - $79,750

$71,400 = $4,250 + Cost of goods manufactured

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3 years ago
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